Using the following data, please answer the questions in below.
Garcon Company Pepper Company
Beginning finished goods inventory $12,000 $ 16,450
Beginning raw materials inventory 14,500 19,950
Beginning raw materials inventory 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 8,200 3,200
General and administrative expenses 21,000 43,000
Indirect labor 1,250 7,660
Raw materials purchases 4,780 1,500
Selling expenses 33,000 52,000
Sales 195,030 290,010
Cash 20,000 15,700
Factory equipment, net 212,500 115,825
Accounts receivable, net 13,200 19,450
Questions:
1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.