Instructions Suppose you are an investment advisor and are looking at two companies to recommend to your clients, Shelly's Seashell Enterprises and Jeremy Feigenbaum Systems The two companies are virtually identical, and both began operations at the beginning of the current year In early January 20X4, both companies purchased equipment costing $143,000, with a 10-year estimated useful life and a $20,000 residual value. Shelly uses the straight- line depreciation method. By contrast, Feigenbaum uses the double-declining-balance method. Both companies' trial balances at December 31, 20X4, included the following Net Sales Revenue Cost of Goods Sold $270,000 70,000 Operating Expenses (other than depreciation) 80,700 Requirements 1. Prepare both companies' income statements. (Disregard income tax expense.) 2. Write a letter to address the following questions for your clients: Which company appears to be more profitable? Which company would you prefer to invest in? Why?