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	$ 14,500	$ 19,300
Work in process inventory, beginning	18,800	19,500
Raw materials inventory, beginning	9,400	12,900
Rental cost on factory equipment	33,750	23,800
Direct labor	19,400	43,800
Finished goods inventory, ending	20,450	13,500
Work in process inventory, ending	27,700	20,800
Raw materials inventory, ending	7,200	8,600
Factory utilities	13,500	13,750
General and administrative expenses	23,000	43,000
Indirect labor	14,550	13,800
RepairsFactory equipment	6,500	3,950
Raw materials purchases	45,500	61,000
Selling expenses	50,800	54,700
Sales	286,890	372,640
Cash	22,000	20,700
Accounts receivable, net	16,800	24,200

1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company.