Use the following information for the Exercises below. The following data is provided for Garcon Company and Pepper Company.

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	12,000			$	16,450
Beginning work in process inventory			14,500				19,950
Beginning raw materials inventory (direct materials)			7,250				9,000
Rental cost on factory equipment			27,000				22,750
Direct labor			19,000				35,000
Ending finished goods inventory			17,650				13,300
Ending work in process inventory			22,000				16,000
Ending raw materials inventory			5,300				7,200
Factory utilities			9,000				12,000
Factory supplies used (indirect materials)			8,200				3,200
General and administrative expenses			21,000				43,000
Indirect labor			1,250				7,660
RepairsFactory equipment			4,780				1,500
Raw materials purchases			33,000				52,000
Selling expenses			50,000				46,000
Sales			195,030				290,010
Cash			20,000				15,700
Factory equipment, net			212,500				115,825
Accounts receivable, net			13,200				19,450
Required: 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company.

PEPPER COMPANY Income Statement For Year Ended December 31, 2019 Operating expenses Income (loss) before tax GARCON COMPANY Income Statement For Year Ended December 31, 2019 Operating expenses Income (loss) before tax Req 1 Garcon Req 1 Pepper Reg 2 Garcon Req 2 Pepper Prepare the current asset section of the balance sheet for Garcon Coi GARCON COMPANY Partial Balance Sheet As of December 31, 2019 Inventories: Total current assets Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the current asset section of the balance sheet for Pepper Cor PEPPER COMPANY Partial Balance Sheet As of December 31, 2019 Inventories: Total current assets