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[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning

[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company.

Garcon Company Pepper Company
Beginning finished goods inventory $ 14,000 $ 19,450
Beginning work in process inventory 16,300 20,100
Beginning raw materials inventory (direct materials) 8,900 9,450
Rental cost on factory equipment 32,750 24,850
Direct labor 24,400 41,000
Ending finished goods inventory 21,050 13,400
Ending work in process inventory 25,000 19,400
Ending raw materials inventory 7,100 8,200
Factory utilities 13,500 16,500
Factory supplies used (indirect materials) 11,500 4,200
General and administrative expenses 31,000 58,500
Indirect labor 1,850 8,620
RepairsFactory equipment 7,340 1,600
Raw materials purchases 34,500 60,500
Selling expenses 55,200 53,800
Sales 220,530 317,510
Cash 28,000 17,700
Factory equipment, net 272,500 118,825
Accounts receivable, net 16,200 20,950

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.

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