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

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	12,100			$	17,200
Beginning work in process inventory			15,900				22,350
Beginning raw materials inventory (direct materials)			11,700				9,600
Rental cost on factory equipment			32,500				23,650
Direct labor			19,000				41,800
Ending finished goods inventory			19,100				13,600
Ending work in process inventory			22,600				18,000
Ending raw materials inventory			6,000				8,200
Factory utilities			13,650				14,000
Factory supplies used (indirect materials)			10,600				4,800
General and administrative expenses			33,500				57,000
Indirect labor			2,050				8,440
RepairsFactory equipment			4,700				3,100
Raw materials purchases			33,000				59,500
Selling expenses			60,800				51,400
Sales			214,530				310,010
Cash			35,000				20,700
Factory equipment, net			247,500				127,825
Accounts receivable, net			15,400				22,700

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.

214,530 GARCON COMPANY Income Statement For Year Ended December 31, 2019 Sales $ Less: Cost of goods sold Gross profit Operating expenses General and administrative expenses Selling expenses 214,530 Income (loss) before tax $ 214,530 PEPPER COMPANY Income Statement For Year Ended December 31, 2019 0 Operating expenses Income (loss) before tax $ 0 GARCON COMPANY Partial Balance Sheet As of December 31, 2019 Inventories: 0 Total current assets $ 0 PEPPER COMPANY Partial Balance Sheet As of December 31, 2019 Inventories: 0 Total current assets $ 0