Required information Use the following information for the Exercises below. [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 Garcon Company $ 12,300 16,900 Pepper Company $ 16,300 23,100 9,900 9,450 32,250 26,800 19,000 41,800 Ending finished goods inventory 19,250 16,000 Ending work in process inventory 27,100 18,400 Ending raw materials inventory 5,700 10,000 Factory utilities 12,900 13,500 Factory supplies used 9,100 4,100 General and administrative expenses 31,000 48,000 Indirect labor 2,200 8,020 Repairs-Factory equipment 7,700 2,050 Raw materials purchases 38,500 63,000 Selling expenses Sales Cash 60,000 52,000 220,530 327,510 26,000 21,200 Factory equipment, net 242,500 115,825 Accounts receivable, net 16,200 20,450 Exercise 18-9 Preparing financial statements for a manufacturer LO C4, P2 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.