Notes payable $ 29,000 Accumulated depreciation—Buildings $ 33,000 Prepaid insurance 4,300 Accounts receivable 7,600 Interest expense 860 Utilities expense 3,100 Accounts payable 10,500 Interest payable 820 Wages payable 2,200 Unearned revenue 1,700 Cash 46,000 Supplies expense 560 Wages expense 9,300 Buildings 220,000 Insurance expense 3,600 Dividends 12,000 Common stock 24,400 Depreciation expense—Buildings 11,000 Retained earnings 108,400 Supplies 1,700 Services revenue 110,000 Prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3

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.