Can someone help me get started on this problem? I'm not sure how to deal with the transactions before preparing the income statement and balance sheet on part A

ACCOUNTING 2010 SPECIAL ASSIGNMENT FALL 2015 Aardvark Company and Bear Company both began operations on 1/1/15. The companies had identical balance sheets at 1/1/15, consisting of the following items: Cash $100,000 12,000 Merchandise Inventory (3,000 units at $4 each) Delivery trucks Note payable (10%) Common stock 85,000 80,000 117.000 During 2015, the two companies had identical transactions. All five transactions described below were cash transactions Purchase: 3/1/15 (5,000 units at S6 cach) Purchase: 5/1/15 (6.000 units at $9 each) Sales: 8/1/15 (11.200 units) Selling expenses paid at various dates Administrative oxpenses paid at various dates 30,000 54.000 1172.000 24.000 20,000 The note is due with interest on 1/1/16. The delivery trucks have a useful life of five years with a total expected salvage value of $15,000. Both companies have a 30% income tax rate, and all income taxes for 2015 will be paid in 2016 A Aardvark Company wishes to report as high a net income as possible. Prepare a 2015 income statement and a 12/31/15 balance sheet for Aardvark. Choose the depreciation method and inventory cost flow assumption that will result in the highest net income. B Bear Company wishes to report as low a net income as possible. Prepare a 2015 income statement and a 12/31/15 balance sheet for Bear. Choose the depreciation method and inventory cost flow assumption that will result in the lowest net income. ACCOUNTING 2010 SPECIAL ASSIGNMENT FALL 2015 Aardvark Company and Bear Company both began operations on 1/1/15. The companies had identical balance sheets at 1/1/15, consisting of the following items: Cash $100,000 12,000 Merchandise Inventory (3,000 units at $4 each) Delivery trucks Note payable (10%) Common stock 85,000 80,000 117.000 During 2015, the two companies had identical transactions. All five transactions described below were cash transactions Purchase: 3/1/15 (5,000 units at S6 cach) Purchase: 5/1/15 (6.000 units at $9 each) Sales: 8/1/15 (11.200 units) Selling expenses paid at various dates Administrative oxpenses paid at various dates 30,000 54.000 1172.000 24.000 20,000 The note is due with interest on 1/1/16. The delivery trucks have a useful life of five years with a total expected salvage value of $15,000. Both companies have a 30% income tax rate, and all income taxes for 2015 will be paid in 2016 A Aardvark Company wishes to report as high a net income as possible. Prepare a 2015 income statement and a 12/31/15 balance sheet for Aardvark. Choose the depreciation method and inventory cost flow assumption that will result in the highest net income. B Bear Company wishes to report as low a net income as possible. Prepare a 2015 income statement and a 12/31/15 balance sheet for Bear. Choose the depreciation method and inventory cost flow assumption that will result in the lowest net income