Requirements

Prepare Nelson Corporation's $2021$ single$-$step income statement, statement of retained earnings, and balance sheet.

Nelson's lenders require that the company maintain a debt ratio no higher than $0\mathrm{.}50.$ Calculate Nelson's debt ratio at December $31,2021,$ to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Nelson could have avoided this difficult situation.

estion $2,$ Pr$-$aA $($similar to$)$

on at December $31,2021,$ follows.

e$-$step income statement, statement of retained ear

$2-$step income statement, statement of retained ear

Year Ended December $31,2021$

Question $4$

Question $5$

Question $6$

Question $7$

Question $8$

Etext pages

Calculator

Data table

$\backslash$table$[[$Cash$,$$$,16,000,],[$Accounts receivable,,$18,800,],[$Supplies$,,2,800,],[$Prepaid rent,,$1,400,],[$Equipment$,,37,400,],[$Accumulated depreciation $-$ equipment,,$$,4,600],[$Accounts payable,,,$8,600],[$Interest payable,,,$400],[$Unearned service revenue,,,$800],[$Income tax payable,,,$2,400],[$Note payable,,,$18,800],[$Common stock,,,$19,000],[$Retained earnings,,,$4,000],[$Dividends$,,3,000,],[$Service revenue,,,$88,300],[$Depreciation expense$-$equipment,,$1,000,],[$Salary expense,,$39,800,],[$Rent expense,,$10,400,],[$Interest expense,,$3,000,]]$