I need small explanations for calculations

Decision Cases Case 1. (Learning Objectives 2, 3: Measuring profitability based on different inventory and depreciation methods) Suppose you are considering investing in two businesses, La Petite France Bakery and Burgers Ahoy!. The two companies are virtually identical, and both began operations at the beginning of the current year. During the year, each company purchased inventory as follows: 10,000 units at $4 - 40,000 5,000 units at $5 25,000 7,000 units at $6 42,000 10,000 units at $7- 70,000 $177,000 an Apr 6 Aug 9 Nov 27 Totals 32,000 During the first year, both companies sold 25,000 units of inventory In early January, both companies purchased equipment costing $150,000 that had a 10-year estimated useful life and a $20,000 residual value. La Petite France uses the inventory and depreciation methods that maximize reported income. By contrast, Burgers uses the inventory and depreciation methods that minimize income tax companies' trial balances at December 31 included the following payments. Assume that both Sales revenue Operating expenses $350,000 50,000 The income tax rate is 40% I Requirements 1. Prepare both companies' income statements. 2. Write an investment newsletter to address the following questions: Which company appears to be more profitable? Which company has more cash to invest in promising projects? If prices continue rising over the long term, which company would you prefer to invest in? Why? (Challenge)