Requirement 2. Buxton Ltd.'s lenders require that the company maintain a debt ratio no higher than 0.50 . Compute Buxton Ltd.'s debt ratio as of December 31 , 20XX, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Buxton Ltd. could have avoided this difficult situation. Compute Buxton Ltd.'s debt ratio as of December 31, 20XX. Select the labels to calculate the debt ratio, and then enter the amounts. (Round your answer to two decimal places.) 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 The adjusted trial balance of Buxton Ltd. as of December 31,20XX, follows. 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. Reain hv nrenarina Buxton I td '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. Prepare the balance sheet. In this step, select the labels for the heading. Then, complete the rest of the balance sheet in the next step. (If an input field is not used in the statement, leave the input field empty; do not select a label or enter a zero.) \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Buxton Ltd. } \\ \hline \multicolumn{4}{|c|}{ Balance Sheet } \\ \hline & & & \\ \hline Assets & & Liabilities & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & Total liabilities & \\ \hline & & Shareholders' Equity & \\ \hline & & & \\ \hline & & Total shareholders' equity & \\ \hline Total assets & & Total liabilities and shareholders' equity & = \\ \hline \end{tabular} 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.) Adjusted Trial Balance Required 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. 2. Buxton Ltd.'s lenders require that the company maintain a debt ratio no higher than 0.50. Compute Buxton Ltd.'s debt ratio as of December 31, 20XX, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Buxton Ltd. could have avoided this difficult situation