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

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	14,000			$	16,900
Beginning work in process inventory			17,200				22,200
Beginning raw materials inventory (direct materials)			7,100				13,650
Rental cost on factory equipment			34,750				25,900
Direct labor			21,200				38,600
Ending finished goods inventory			18,800				14,300
Ending work in process inventory			26,200				20,000
Ending raw materials inventory			7,500				9,400
Factory utilities			9,600				17,000
Factory supplies used (indirect materials)			8,500				3,600
General and administrative expenses			31,000				58,500
Indirect labor			2,300				9,460
RepairsFactory equipment			6,140				2,950
Raw materials purchases			41,000				59,000
Selling expenses			62,000				59,200
Sales			225,030				297,510
Cash			35,000				18,200
Factory equipment, net			257,500				154,825
Accounts receivable, net			13,400				21,450

Exercise 14-9 Preparing financial statements for a manufacturer LO C4, P2

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.