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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	$ 14,400	$ 19,450
Work in process inventory, beginning	17,900	21,600
Raw materials inventory, beginning	9,600	14,700
Rental cost on factory equipment	30,750	25,300
Direct labor	24,200	37,400
Finished goods inventory, ending	18,350	13,900
Work in process inventory, ending	24,400	21,200
Raw materials inventory, ending	5,600	7,800
Factory utilities	11,250	14,250
General and administrative expenses	34,000	52,000
Indirect labor	10,850	14,740
RepairsFactory equipment	5,900	3,750
Raw materials purchases	35,500	66,000
Selling expenses	52,000	48,400
Sales	287,370	373,490
Cash	23,000	21,200
Accounts receivable, net	15,400	20,950

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