The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2. Required December 31 Year 1 Year 2 Cash $ 64,300 $ 15,640 Accounts receivable 26,240 19,100 Office supplies 3,160 1,960 Office equipment 44,000 44,000 Trucks 148,000 157,000 Building O 80,000 Land 0 60,000 Accounts payable Note payable 3,500 33,500 0 40,000 1. Prepare balance sheets for the business as of December 31 for Year 1 and Year 2. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. 2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During Year 2, the owner invested $35,000 additional cash in the business (in exchange for common stock) and the company paid a $19,000 cash dividend. 3. Compute the Year 2 year-end debt ratio.