[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	$ 12,100	$ 16,900
Work in process inventory, beginning	15,100	19,650
Raw materials inventory, beginning	8,200	13,050
Rental cost on factory equipment	31,250	26,050
Direct labor	21,600	36,600
Finished goods inventory, ending	20,600	13,700
Work in process inventory, ending	24,700	17,000
Raw materials inventory, ending	6,700	9,800
Factory utilities	13,800	15,250
General and administrative expenses	23,000	48,500
Indirect labor	16,050	13,420
RepairsFactory equipment	6,620	3,250
Raw materials purchases	46,000	61,500
Selling expenses	55,600	58,000
Sales	293,490	387,390
Cash	26,000	23,200
Accounts receivable, net	15,800	20,950

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