Required information Problem 2-5A Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO C2, A1, A2, P3 [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, 2016 and 2017 December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable 2016 2017 $ 64,300 $ 15,640 26,240 19,100 3,160 1,960 44,000 44,000 148,000 157,000 0 80,000 60,000 3,500 33,500 0 40,000 Required information 2. Compute net income for 2017 by comparing total equity amounts for these two years and using the following information: During 2017, the owner invested $35,000 additional cash in the business (in exchange for common stock) and the company paid $19.000 cash in dividends. Equity, December 31, 2016 Equity, December 31, 2017 2. Compute net income for 2017 by comparing total equity amounts for these two years and us 2017, the owner invested $35,000 additional cash in the business (in exchange for common st cash in dividends. Equity, December 31, 2016 Add: Dividends Add: Net income Add: Owner's investment Required: 1. Prepare balance sheets for the business as of December 31, 2016 and 2017. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.) NETTLE DISTRIBUTION Balance Sheet December 31, 2016 Liabilities Assets Accounts payable Accounts receivable Equity Total equity 0 Total liabilities and equity $ 0 Building Cash Problem 2-5A Part 1 Required: 1. Prepare balance sheets for the business as of December 31, 2016 and 2017. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.) NETTLE DISTRIBUTION Balance Sheet December 31, 2016 Liabilities Assets Land Notes payable Office equipment Office supplies Equity Total equity 0 Total liabilities and equity $ 0 Trucks NETTLE DISTRIBUTION Balance Sheet December 31, 2017 Liabilities Assets + Total liabilities Equity Total equity 0 Total liabilities and equity Total assets $ $ GA 0