The adjusted trial balance for the year of Sunray Corporation at March 31, 2021, follows. Requirements 1.
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The adjusted trial balance for the year of Sunray Corporation at March 31, 2021, follows.
Requirements
1. Prepare Sunray Corporation’s 2021 single-step income statement, statement of retained earnings, and balance sheet. Draw arrows linking the three financial statements.
2. Sunray’s lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Sunray’s debt ratio at March 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Sunray could have avoided this difficult situation.
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