[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.

	Garcon Company	Pepper Company
Finished goods inventory, beginning	$ 12,800	$ 19,000
Work in process inventory, beginning	14,600	21,900
Raw materials inventory, beginning	11,300	13,650
Rental cost on factory equipment	33,750	26,500
Direct labor	20,400	38,200
Finished goods inventory, ending	17,300	13,300
Work in process inventory, ending	26,500	19,400
Raw materials inventory, ending	7,000	7,800
Factory utilities	10,200	13,750
General and administrative expenses	32,000	47,000
Indirect labor	10,300	11,440
RepairsFactory equipment	4,700	3,500
Raw materials purchases	44,500	64,500
Selling expenses	60,000	57,700
Sales	291,720	375,810
Cash	25,000	22,700
Accounts receivable, net	14,600	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.

Prepare the income statement for Garcon Company.

Req 1 Garqon

GARCON COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
		$0

Req 1 pepper

Prepare the income statement for Pepper Company.

PEPPER COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
Net income		$0

Req 2 Garqon

Prepare the current asset section of the balance sheet for Garcon Company.

GARCON COMPANY
Balance SheetCurrent Assets Section
December 31
Total current assets	$0

Req 2 Pepper

Prepare the current asset section of the balance sheet for Pepper Company.

PEPPER COMPANY
Balance SheetCurrent Assets Section
December 31
Total current assets	$0