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	$ 12,200	$ 18,100
Work in process inventory, beginning	16,100	21,150
Raw materials inventory, beginning	7,400	13,500
Rental cost on factory equipment	27,250	24,100
Direct labor	23,800	37,000
Finished goods inventory, ending	19,700	14,900
Work in process inventory, ending	27,700	17,600
Raw materials inventory, ending	7,400	8,800
Factory utilities	14,700	17,750
General and administrative expenses	33,000	59,000
Indirect labor	14,100	14,320
RepairsFactory equipment	7,220	2,050
Raw materials purchases	33,500	62,500
Selling expenses	59,200	58,600
Sales	271,620	392,790
Cash	34,000	17,700
Accounts receivable, net	14,600	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.

Prepare the income statement for Garcon Company.

GARCON COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
		$0

repare the income statement for Pepper Company.

PEPPER COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
Net income		$0

Prepare the current asset section of the balance sheet for Garcon Company.

GARCON COMPANY
Balance SheetCurrent Assets Section
December 31
Total current assets	$0

repare the current asset section of the balance sheet for Pepper Company.

PEPPER COMPANY
Balance SheetCurrent Assets Section
December 31
Total current assets	$0