The following transactions pertain to year 1, the first-year operations of Gibson Company. All inventory was started and completed during year 1. Assume that all transactions are cash transactions.
a. Acquired $12,000 cash by issuing common stock.
b. Paid $4,700 for materials used to produce inventory.
c. Paid $2,400 to production workers.
d. Paid $900 rental fee for production equipment.
e. Paid $350 to administrative employees.
f. Paid $400 rental fee for administrative office equipment.
g. Produced 400 units of inventory of which 360 units were sold at a price of $25 each.
Required1. Prepare an income statement and a balance sheet in accordance with GAAP.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.