Below is select information from two, independent companies.

Additional information includes:

On January $1,$ Company A issued a $5-$year $$1,500,000$ bond with at $6\%$ stated rate. Interest is paid semiannually and the bond was sold at $105\mathrm{.}5055$ to yield a market rate of $4\mathrm{.}75\%.$

On January $1,$ Company B sold $$1,500,000$ of common stock and paid dividends of $$75,000.$

Prepare an income statement for each company $($ignore taxes$)$

Explain why the net income amounts are different, paying particular attention to the operational performance and financing performance of each company. $($Hint: it may be helpful for you to create an amortization table$).$