Please recommend, which company to invest in and the reasons why?

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New World Company Income Statement For Year Ended 30th June 2019 Sales Cost of Goods Sold Gross Profit $ 398,500 ($ 188,800) $ 209,700 $ $ Operating Expenses Bad Debt Expense Depreciation Expense Other Operating Expense Total Operating Expenses Operating Income 4,970 41,500 34,200 80,670 129,030 $ $ Other Expenses Interest Expense Income before Taxes Income Tax Expense Net Income $ $ ($ $ 35,010 94,020 23,505) 70,515 Wild River Trading Company Income Statement For Year Ended 30th June 2019 Sales Cost of Goods Sold Gross Profit $ (s $ 398,500 177,000) 221,500 Operating Expenses Bad Debit Expense Depreciation Expense Other Operating Expense Total Operating Expenses Operating Income $ $ $ $ $ 994 19,000 34,200 54,194 167,306 Other Expenses Lease Expense Interest Expense Total Other Expenses Income before Taxes Income Tax Expense Net Income $ $ $ $ ($ $ 16,000 27,650 43,650 123,656 30,914) 92,742 APPENDIX B - BALANCE SHEETS Wild River Trading Company Balance Sheet As at 30th June 2019 Assets Liabilities Current Assets Current Liabilities Cash at Bank $ 426 Accounts Payable Accounts Receivable $ 99,400 Interest Payable Allowance for Bad Debts ($994) Commerical Bill Payable Inventory $ 62,800 Total Current Assets $ 161,632 Total Current Liabilities $ $ $ 26,440 6,650 20,000 $ 53,090 Non-Current Liabilities Commerical Bill Total Liabilities $360,000 $ 413,090 Non-Current Assets Land $ 70,000 Building $ 350,000 Less Accumulated Depreciation ($10,000) Equipment $ 80,000 Less Accumulated Depreciation ($9000) Total Non-Current Assets $ 481,000 Equity Capital Retained Earnings Total Equity $ 160,000 $ 69,542 $ 229,542 Total Assets $ 642,632 Total Liabilities and Equity $ 642,632 Accounts Receivable Allowance for Bad Debts Inventory Total Current Assets 99,400 Interest Payable ($4970) Commercial Bill Payable $ 51,000 Lease Payable $ 158,235 Total Current Liabilities $ $ $ $ 6,650 20,000 83,360 136,450 $360,000 $ 496,450 Non-Current Assets Land Building Less Accumulated Depreciation Equipment Less Accumulated Depreciation Lease Equipment Less Accumulated Depreciation Non-Current Liabilities $ 70,000 Commerical Bill $ 350,000 Total Liabilities ($10,000) $ 80,000 Equity ($20000) Capital $ 92,000 Retained Earnings ($11,500) Total Equity $ 550,500 $ 703,765 Total Liabilities and Equity $ $ $ 160,000 47,315 207,315 Total Assets $ 703,765 APPENDIX A - INCOME STATEMENTS New World Company Income Statement For Year Ended 30th June 2019 Sales $ 398,500 Cost of Goods Sold ($ 188,800) Gross Profit $ 209,700 $ $ $ $ $ Operating Expenses Bad Debt Expense Depreciation Expense Other Operating Expense Total Operating Expenses Operating Income Other Expenses Interest Expense Income before Taxes Income Tax Expense Net Income 4,970 41,500 34,200 80,670 129,030 $ $ ($ $ 35,010 94,020 23,505) 70,515 Wild River Trading Company Income Statement For Year Ended 30th June 2019 Sales Cost of Goods Sold Gross Profit $ ($ $ 398,500 177,000) 221,500 $ $ $ $ 994 19,000 34,200 54,194 167,306 Operating Expenses Bad Debit Expense Depreciation Expense Other Operating Expense Total Operating Expenses Operating Income Other Expenses Lease Expense Interest Expense Total Other Expenses Income before Taxes Income Tax Expense Net Income $ $ $ $ (s $ 16,000 27,650 43,650 123,656 30,914) 92,742