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The following data is provided for Garcon Company and Pepper Company for the year ended December 31.

	Garcon Company	Pepper Company
Finished goods inventory, beginning	$ 14,200	$ 16,150
Work in process inventory, beginning	15,900	22,200
Raw materials inventory, beginning	8,100	10,650
Rental cost on factory equipment	31,000	22,150
Direct labor	23,400	37,000
Finished goods inventory, ending	19,100	16,900
Work in process inventory, ending	25,900	18,600
Raw materials inventory, ending	6,300	7,400
Factory utilities	11,850	17,250
General and administrative expenses	35,000	57,000
Indirect labor	10,400	13,520
RepairsFactory equipment	7,100	2,350
Raw materials purchases	47,000	55,000
Selling expenses	62,800	47,500
Sales	272,670	375,030
Cash	21,000	23,700
Accounts receivable, net	13,400	24,950

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