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Use the following information for the Exercises below.

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The following data is provided for Garcon Company and Pepper Company.

Garcon Company Pepper Company

Beginning finished goods inventory $ $12,000$ $ $16,450$

Beginning work in process inventory $14,50019,950$

Beginning raw materials inventory $($direct materials$)7,2509,000$

Rental cost on factory equipment $27,00022,750$

Direct labor $19,00035,000$

Ending finished goods inventory $17,65013,300$

Ending work in process inventory $22,00016,000$

Ending raw materials inventory $5,3007,200$

Factory utilities $9,00012,000$

Factory supplies used $($indirect materials$)8,2003,200$

General and administrative expenses $21,00043,000$

Indirect labor $1,2507,660$

Repairs$$Factory equipment $4,7801,500$

Raw materials purchases $33,00052,000$

Selling expenses $50,00046,000$

Sales $195,030290,010$

Cash $20,00015,700$

Factory equipment, net $212,500115,825$

Accounts receivable, net $13,20019,450$

Exercise $18-9$ Preparing financial statements for a manufacturer LO C$4,$ P$2$

Required:

$1.$ Prepare income statements for both Garcon Company and Pepper Company.

$2.$ Prepare the current assets section of the balance sheet for each company.