! Required information 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 Cash Accounts receivable Office supplies Year 1 $ 43,232 Year 2 $ 6,493 18,398 2,711 23,467 3,702 Office equipment 113,633 121,041 Trucks 44,466 53,466 Building 0 148,231 Land 0 36,990 Accounts payable 61,695 30,599 Note payable 0 85,221 Problem 2-5A (Algo) Part 2 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 $37,000 additional cash in the business in exchange for common stock, and the company paid a $31,200 cash dividend. Equity, December 31, Year 1 Add: Owner's investment $ 166,805 37,000 Add: Net income Less: Dividends 203,805 Equity, December 31, Year 2 $ 203,805