Credit Nicholl Corporation Adjusted Trial Balance July 31, 2018 Account Debit Cash $ 14,000 Accounts receivable 18,900 Supplies 2,100 Prepaid rent 1,400 Equipment 37,000 Accumulated depreciationequipment Accounts payable 4,800 8,700 The adjusted trial balance for the year of Nicholl Corporation at July 31, 2018, follows. (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare Nicholl Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Nicholl's 2018 income statement Nicholl Corporation Income Statement Year Ended July 31, 2018 Income before tax Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Nicholl Corporation Statement of Retained Earnings Year Ended July 31, 2018 Add: Subtotal Less: Prepare the balance sheet. (If a box is not used in the balance sheet leave the box empty; do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections.) Nicholl Corporation Balance Sheet July 31, 2018 Assets Liabilities Stockholders' Equity Less: Requirement 2. Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Nicholl's debt ratio at July 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Nicholl could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Nicholl's debt ratio at July 31, 2018. (Round your calculation to two decimal places.) Debt ratio Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Nicholl is with this debt restriction at July 31, 2018. Credit Nicholl Corporation Adjusted Trial Balance July 31, 2018 Account Debit Cash $ 14,000 Accounts receivable 18,900 Supplies 2,100 Prepaid rent 1,400 Equipment 37,000 Accumulated depreciationequipment Accounts payable 4,800 8,700 The adjusted trial balance for the year of Nicholl Corporation at July 31, 2018, follows. (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare Nicholl Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Nicholl's 2018 income statement Nicholl Corporation Income Statement Year Ended July 31, 2018 Income before tax Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Nicholl Corporation Statement of Retained Earnings Year Ended July 31, 2018 Add: Subtotal Less: Prepare the balance sheet. (If a box is not used in the balance sheet leave the box empty; do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections.) Nicholl Corporation Balance Sheet July 31, 2018 Assets Liabilities Stockholders' Equity Less: Requirement 2. Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Nicholl's debt ratio at July 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Nicholl could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Nicholl's debt ratio at July 31, 2018. (Round your calculation to two decimal places.) Debt ratio Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Nicholl is with this debt restriction at July 31, 2018
