Hobson Brothers, Inc., engaged Young, Simpson, and Norris, CPAs, to compile their financial statements from books and records maintained by Jim Hobson, one of the principals in the business. The Hobson’s own and operate three air-conditioning businesses in Kansas City. Although the business is growing, they have not employed a full-time bookkeeper. Jim indicates that he wants a balance sheet, a statement of operations, and a statement of cash flows. He is unable to provide footnotes to accompany the statement because he is too busy in the operation of the business. Jim directed the physical count of inventory on March 31, 2011, and then adjusted and closed the books on that date. The auditors find that Jim is a pretty good accountant and has taken a few university accounting courses. The records appear to have been maintained in accordance with GAAP and they find no obvious errors.

Required:
Prepare a compilation services report that Young, Simpson, and Norris, CPAs, might issue.