Required information [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 Work in process inventory, beginning Raw materials inventory, beginning Rental cost on factory equipment Direct labor $ 13,100 16,200 $ 19,150 21,000 9,500 11,700 27,500 26,800 20,800 35,400 Finished goods inventory, ending 19,100 13,400 Work in process inventory, ending 28,000 19,400 Raw materials inventory, ending 7,300 7,800 Factory utilities 11,250 13,250 General and administrative expenses 30,500 44,500 Indirect labor 13,350 14,240 Repairs-Factory equipment 4,940 2,550 Raw materials purchases 45,000 57,500 Selling expenses 60,000 54,100 Sales 288,990 399,420 Cash 29,000 21,200 Accounts receivable, net 16,200 22,200 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement Sales For Year Ended December 31 SA $ 288,990 Cost of goods sold: Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net loss $ 13,100 Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement Sales For Year Ended December 31 SA $ 288,990 Cost of goods sold: Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net loss $ 13,100