[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Garcon Company Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) Rental cost on factory equipment $ 12,100 17,500 Pepper Company $ 18,550 23,100 7,300 14,850 31,000 26,050 Direct labor 24,200 35,800 Ending finished goods inventory 20,450 14,000 Ending work in process inventory 22,600 18,000 Ending raw materials inventory 6,300 9,600 Factory utilities 13,800 12,750 Factory supplies used (indirect materials) 13,900 3,800 General and administrative expenses 21,000 53,500 Indirect labor 1,450 9,460 Repairs-Factory equipment 6,860 1,500 Raw materials purchases Selling expenses Sales Cash Factory equipment, net 41,000 IN 67,000 56,400 55,900 225,030 292,510 28,000 20,200 222,500 139,825 Accounts receivable, net 16,800 20,200 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.