Required information Problem 2-5A Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO C2, A1, A2, P3 [The following information applies to the questions displayed below.) The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2016 and 2017 2017 December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable 2016 $ 64,300 26,240 3,160 44,000 148,000 0 0 3,500 0 $ 15,640 19,100 1,960 44,000 157,000 80,000 60,000 33,500 40,000 Problem 2-5A Part 3 3. Compute the 2017 year-end debt ratio for the business. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio Debt ratio = 1 11 3. Compute the 2017 year-end debt ratio for the business. Debt Ratio 1 Choose Numerator: Choose Denominator: II Debt Ratio 1 = Debt ratio II Accounts receivable Cost of goods sold Current assets Current liabilities Net income Debt Ratio Choose Numerator: 1 Choose Denominator: Current liabilities Net income Net sales Total assets Total liabilities Problem 2-5A Part 3 3. Compute the 2017 year-end debt ratio for the business. Debt Ratio Choose Numerator: 1 Choose Denominator: Debt Ratio / Debt ratio 1 Average accounts receivable, net Average total assets Cost of goods sold Current assets Current liabilities 3. Compute the 2017 year-end debt ratio for the business. Debt Ratio Choose Denominator: = Choose Numerator: 1 Debt Ratio Debt ratio = 1 1 Current liabilities Interest expense Net sales Total assets Total liabilities