[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory, beginning Rental cost on factory equipment Direct labor Garcon Company $ 13,600 15,900 Pepper Company $ 16,750 21,300 10,400 10,950 32,250 26,950 20,200 38,600 Finished goods inventory, ending 18,200 14,000 Work in process inventory, ending Raw materials inventory, ending Factory utilities 23,500 21,200 6,600 7,400 12,600 16,750 General and administrative expenses 23,000 56,000 Indirect labor 12,750 13,960 Repairs-Factory equipment 6,620 3,300 Raw materials purchases 35,000 52,500 Selling expenses 50,800 58,000 Sales 275,100 391,290 Cash 28,000 16,700 Accounts receivable, net 14,200 19,700 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company. Complete this question by entering your answers in the tabs below. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Sales Income Statement For Year Ended December 31 $ 275,100 Cost of goods sold: Finished goods inventory, beginning Cost of goods manufactured Goods available for sale. Less: Finished goods inventory, ending Cost of goods sold $ 13,600 87,000 100,600 18,200 82,400 Cost of goods sold: Finished goods inventory, beginning Cost of goods manufactured $ EA 13,600 87,000 Goods available for sale 100,600 Less: Finished goods inventory, ending 18,200 Cost of goods sold 82,400 Gross profit 192,700 General and administrative expenses Selling expenses 23,000 50,800 Net income $ 118,900 Req 1 Garcon Req 1 Pepper > Prepare the income statement for Pepper Company. PEPPER COMPANY Income Statement For Year Ended December 31 Sales $ 391,290 Cost of goods sold: Finished goods inventory, beginning $ 16,750 Cost of goods manufactured Goods available for sale 16,750 Less: Finished goods inventory, ending 14,000 + Cost of goods sold 2,750 Gross profit 388,540 General and administrative expenses Selling expenses Net income 56,000 58,000 $ 274,540 Prepare the current asset section of the balance sheet for Garcon Company. GARCON COMPANY Balance Sheet-Current Assets Section December 31 $ 28,000 14,200 Cash Accounts receivable, net Raw materials inventory 6,600 Work in process inventory 23,500 Finished goods inventory Total current assets 18,200 $ 90,500 Prepare the current asset section of the balance sheet for Pepper Company. PEPPER COMPANY Balance Sheet-Current Assets Section December 31 $ 16,700 19,700 Cash Accounts receivable, net Raw materials inventory Work in process inventory Finished goods inventory Total current assets 7,400 21,200 14,000 EA $ 79,000 Reg 2 Garcon Req 2 Pepper