[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 $ 14,500 $ 19,150 Work in process inventory, beginning 14,700 20,100 Raw materials inventory, beginning 9,100 11,550 Rental cost on factory equipment 35,000 24,550 Direct labor 24,200 39,000 Finished goods inventory, ending 21,500 16,800 Work in process inventory, ending

[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	$ 14,500	$ 19,150
Work in process inventory, beginning	14,700	20,100
Raw materials inventory, beginning	9,100	11,550
Rental cost on factory equipment	35,000	24,550
Direct labor	24,200	39,000
Finished goods inventory, ending	21,500	16,800
Work in process inventory, ending	26,500	20,000
Raw materials inventory, ending	5,800	7,600
Factory utilities	12,150	15,000
General and administrative expenses	21,000	48,500
Indirect labor	12,750	12,400
RepairsFactory equipment	5,180	2,750
Raw materials purchases	40,500	55,000
Selling expenses	50,800	56,500
Sales	292,020	374,580
Cash	32,000	23,700
Accounts receivable, net	16,000	19,950

1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.