Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1 [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 for Year 1 and Year 2. December 31 Cashi Accounts receivable Office supplies 22,786 3,358 149,910 Year 1 Year 2 $ 53,544 $ 10,189 29,064 4,585 140,736 55,071 64,071 Building 183,586 Land e 45,813 Accounts payable 76,410 37,897 Office equipment Trucks Note payable 129,399 2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During Year 2, the owner invested $33,000 additional cash in the business and withdrew $43,200 cash for personal use. Answer is not complete. Equity, December 31, Year 1 $479,713 Add: Owner's investment Add: Owner withdrawals 33,000 43,200 555,913 Equity, December 31, Year 2 $ 555,913 3. Compute the Year 2 year-end debt ratio. Debt Ratio Choose Numerator: Choose Denominator: Debt Ratio Debt ratio