The accounting records of Tama Co. show the following assets and liabilities as of December 31, 2018 and 2019.

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.

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 $5,000 additional cash in the business and withdrew $3,000 cash for personal use.

3. Compute the December 31, 2019, debt ratio (in percent and rounded to one decimal).

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December 31 December 31 2018 2019 2019 2018 O $250,000 50,000 12,000 250,000 $30,000 $ 5,000 25,000 Building.... Land Accounts payable. Note payable Cash Accounts receivable. Office supplies . Office equipment Machinery .... 35,000 8,000 40,000 13,500 40,000 4,000 28,000 28,500