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Required information Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1 Skip to
Required information
Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1
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[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 | Year 1 | Year 2 |
---|---|---|
Cash | $ 48,814 | $ 8,493 |
Accounts receivable | 26,497 | 20,773 |
Office supplies | 4,180 | 3,061 |
Office equipment | 128,303 | 136,668 |
Trucks | 50,206 | 59,206 |
Building | 0 | 167,368 |
Land | 0 | 41,767 |
Accounts payable | 69,660 | 34,550 |
Note payable | 0 | 109,135 |
Problem 2-5A (Algo) Part 3
3. Compute the Year 2 year-end debt ratio.
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