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, 2018 and 2019. December 31 Cash Accounts receivable Office supplies office equipment Trucks Building Land Accounts payable Note payable 2018 $ 52,125 28,294 4,463 137,006 53,612 2019 $ 9,680 22,183 3,269 145,938 62,612 178,721 44,597 36,893 123,318 @ 74,385 @ Problem 2-5A Part 1 3 Required: 1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint. Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities NETTLE DISTRIBUTION Balance Sheet December 31, 2018 Liabilities Assets Equity Total equity Total liabilities and equity Total assets NETTLE DISTRIBUTION Balance Sheet December 31, 2019 Assets Liabilities Total liabilities Equity Total equity Total liabilities and equity Total assets Problem 2-5A Part 2 2. Compute net income for 2019 by comparing total equity amounts for these two years and using the following information. During 2019, the owner invested $35.000 additional cash in the business and withdrew $25,200 cash for personal use. Equity, December 31, 2018 Equity December 31, 2019 Problem 2-5A Part 3 3. Compute the 2019 year-end debt ratio for the business. Debt Ratio Choose Numerator: T Choose Denominator: Debt Ratio Debt ratio 11 11