The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company
Beginning finished goods inventory $13,700 $17,800
Beginning work in process inventory 18,000 23,400
Beginning raw materials inventory (direct materials) 10,700 12,000
Rental cost on factory equipment 33,750 23,200
Direct labor 23,200 37,000
Ending finished goods inventory 21,350 15,800
Ending work in process inventory 22,600 19,800
Ending raw materials inventory 6,500 7,600
Factory utilities 12,450 16,250
Factory supplies used (indirect materials) 11,500 3,500
General and administrative expenses 33,500 57,500
Indirect labor 1,700 9,340
Repairs—Factory equipment 7,460 3,900
Raw materials purchases 43,000 58,500
Selling expenses 62,400 52,300
Sales 195,030 320,010
Cash 31,000 19,700
Factory equipment, net 247,500 163,825
Accounts receivable, net 13,600 20,950

Required:
a. Prepare income statements for both Garcon Company and Pepper Company.
b. Prepare the current assets section of the balance sheet for each company

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Rosie and her brother michael decided recently to purchase an rv together. they both want to use the rv to take their families camping. the price of the rv was $10,000. since michael expects to use the rv 60% of the time and rosie 40% of the time, michael contributed $6,000 and rosie contributed $4,000. their ownership percentage equals their contribution percentage. which type of property titling should they use to reflect their ownership interest?

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.