Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company.

Required information [The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental cost on factory equipment Direct labor Ending finished goods inventory Ending work in process inventory Ending raw materials inventory Factory utilities Factory supplies used General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $ 13,500 16,500 11,200 30,750 23,600 20,300 27,700 5,700 9,600 12,700 34,500 1,950 7,100 44,500 64,000 219,030 28,000 272,500 15,200 Pepper Company $ 16,150 20,250 12,000 23,200 36,600 15,900 17,400 9,400 13,750 4,100 48,500 9,700 2,650 68,500 55,300 342,510 16,200 145,825 24,450