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	$ 17,650
Work in process inventory, beginning	18,600	21,450
Raw materials inventory, beginning	7,600	13,650
Rental cost on factory equipment	27,750	25,300
Direct labor	19,600	41,800
Finished goods inventory, ending	20,900	16,300
Work in process inventory, ending	22,600	20,400
Raw materials inventory, ending	8,000	10,000
Factory utilities	14,250	15,250
General and administrative expenses	25,500	45,500
Indirect labor	12,000	12,900
RepairsFactory equipment	7,580	3,100
Raw materials purchases	42,000	62,500
Selling expenses	53,600	51,100
Sales	290,430	375,950
Cash	25,000	18,700
Accounts receivable, net	14,800	21,200

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