Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.

The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory, beginning Rental cost on factory equipment Direct labor Garcon Company $ 12,400 Pepper Company $ 18,700 15,700 20,400 7,700 15,000 28,000 25,450 20,000 35,800 Finished goods inventory, ending 19,850 16,900 Work in process inventory, ending 28,000 19,800 Raw materials inventory, ending 6,800 8,800 Factory utilities 14,850 15,000 General and administrative expenses 31,000 49,000 Indirect labor 11,450 15,840 Repairs-Factory equipment 5,420 3,100 Raw materials purchases 34,000 64,000 Selling expenses 62,000 55,600 Sales 298,200 387,810 Cash 26,000 17,200 Accounts receivable, net 16,200 21,700