Use the following information for the Exercises below.

[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		$	12,700			$	16,000
Beginning work in process inventory			17,300				23,250
Beginning raw materials inventory			9,500				12,000
Rental cost on factory equipment			30,000				22,300
Direct labor			24,200				36,200
Ending finished goods inventory			18,950				15,600
Ending work in process inventory			24,400				21,600
Ending raw materials inventory			7,100				9,600
Factory utilities			9,750				12,500
Factory supplies used			8,500				5,400
General and administrative expenses			26,000				57,000
Indirect labor			2,350				8,260
RepairsFactory equipment			7,100				2,900
Raw materials purchases			36,000				61,500
Selling expenses			61,200				50,800
Sales			240,030				327,510
Cash			26,000				24,200
Factory equipment, net			232,500				151,825
Accounts receivable, net			17,000				24,700

Exercise 18-9 Preparing financial statements for a manufacturer LO C4, P2

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.