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[The following information applies to the questions displayed below.] 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	$ 13,600	$ 17,500
Work in process inventory, beginning	17,900	20,700
Raw materials inventory, beginning	10,900	13,950
Rental cost on factory equipment	29,500	25,000
Direct labor	21,200	40,600
Finished goods inventory, ending	20,000	14,100
Work in process inventory, ending	28,000	17,000
Raw materials inventory, ending	7,300	9,800
Factory utilities	10,950	15,250
General and administrative expenses	21,500	53,000
Indirect labor	10,400	13,040
RepairsFactory equipment	7,100	3,700
Raw materials purchases	39,500	53,000
Selling expenses	62,000	51,100
Sales	296,370	392,240
Cash	21,000	19,200
Accounts receivable, net	13,600	23,950

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