Use the following information for the Exercises below. (Algo)

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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	$ 13,400	$ 16,150
Work in process inventory, beginning	17,900	20,700
Raw materials inventory, beginning	10,000	14,400
Rental cost on factory equipment	31,500	24,400
Direct labor	21,200	42,600
Finished goods inventory, ending	18,950	15,500
Work in process inventory, ending	27,700	21,000
Raw materials inventory, ending	6,300	7,800
Factory utilities	10,200	15,750
General and administrative expenses	25,000	54,500
Indirect labor	12,450	15,220
RepairsFactory equipment	5,060	3,650
Raw materials purchases	39,500	53,500
Selling expenses	52,400	50,200
Sales	290,130	392,650
Cash	24,000	23,700
Accounts receivable, net	13,200	23,950

Exercise 14-8 (Algo) Preparing financial statements for a manufacturer LO P1

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

omplete this question by entering your answers in the tabs below.

• Req 1 Garcon
• Req 1 Pepper
• Req 2 Garcon
• Req 2 Pepper

Prepare the income statement for Garcon Company.

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