[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		$	12,300			$	17,800
Beginning work in process inventory			17,700				19,800
Beginning raw materials inventory			7,800				12,900
Rental cost on factory equipment			33,250				26,800
Direct labor			20,200				37,800
Ending finished goods inventory			17,900				16,800
Ending work in process inventory			22,300				18,600
Ending raw materials inventory			5,800				9,600
Factory utilities			10,650				14,000
Factory supplies used			13,300				3,300
General and administrative expenses			23,500				50,500
Indirect labor			1,350				9,580
RepairsFactory equipment			4,820				3,650
Raw materials purchases			43,000				54,500
Selling expenses			58,400				56,200
Sales			217,530				345,010
Cash			23,000				22,700
Factory equipment, net			222,500				121,825
Accounts receivable, net			13,800				19,950

Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company.

Prepare the income statement for Garcon Company.

REQ 1A:

GARCON COMPANY
Income Statement
For Year Ended December 31, 2017
Sales
Less: Cost of goods sold
Gross profit	0
Operating expenses
Selling expenses
General and administrative expenses
Income (loss) before tax	$0

REQ 1A: Prepare the income statement for Pepper Company.

PEPPER COMPANY
Income Statement
For Year Ended December 31, 2017
	0
Operating expenses
Income (loss) before tax	$0

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

REQ 1B:

GARCON COMPANY
Partial Balance Sheet
As of December 31, 2017
Cash
Accounts receivable, net
Inventories:
Raw materials inventory
Work in process inventory
Finished goods inventory
		0
Total current assets		$0

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

REQ 1 B: Pepper

PEPPER COMPANY
Partial Balance Sheet
As of December 31, 2017
Inventories:
		0
Total current assets		$0