Requirement 1. Prepare Buxton Ltd.'s 20XX income statement, statement of retained earnings, and balance sheet. List expenses (except for income tax) in decreasing order on the income statement, and show total liabilities on the balance sheet. Beain hv nrenarina Buxton Itd 's 20XX income statement. In this step, select the labels for the heading. Then, complete the body of the income statement in the next step. field empty; do not select a label or enter a zero.) Next, prepare the statement of retained earnings. Select the labels for the heading in this step. Then complete the body of the statement in the next step. (Complete all input fields.) Add: Subtotal Less: is in compliance with this debt restriction. If not, suggest a way that Buxton Ltd. could have avoided this difficult situation. ==Debtratio Buxton's lenders require that the company maintain a debt ratio 0.50. Buxton is in this debt restriction as of December 31,20XX. Since Buxton in violation, it \begin{tabular}{|c|c|c|c|} \hline BuxAdjustedDecem & al E & lance & \\ \hline Account Title & & Debit & Credit \\ \hline Cash & $ & 1,420 & \\ \hline Accounts receivable & & 9,000 & \\ \hline Supplies & & 2,270 & \\ \hline Prepaid rent & & 1,580 & \\ \hline Equipment & & 37,500 & \\ \hline Accumulated depreciation & & $ & 4,260 \\ \hline Accounts payable & & & 3,690 \\ \hline Interest payable & & & 780 \\ \hline Unearned service revenue & & & 590 \\ \hline Income tax payable & & & 2,080 \\ \hline Note payable & & & 18,100 \\ \hline Common shares & & & 5,200 \\ \hline Retained earnings & & & 1,050 \\ \hline Dividends & & 24,200 & \\ \hline Service revenue & & & 109,350 \\ \hline Depreciation expense & & 1,620 & \\ \hline Salary expense & & 39,700 & \\ \hline Rent expense & & 10,900 & \\ \hline Interest expense & & 3,040 & \\ \hline Insurance expense & & 3,750 & \\ \hline Supplies expense & & 2,870 & \\ \hline Income tax expense & & 7,250 & \\ \hline Total & $ & 145,100$ & 145,100 \\ \hline \end{tabular}