The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2012 and 2013. December 31 2012 2013 Cash $ 42,570 $ 6,256 Accounts receivable 23,108 18,116 Office supplies 3,645 2,670 Office equipment 111,893 119,187 Trucks 43,784 52,784 Building 0 145,961 Land 0 36,424 Accounts payable 60,750 30,130 Note payable 0 82,385 Late in December 2013, the business purchased a small office building and land for $182,385. It paid $100,000 cash toward the purchase and a $82,385 note payable was signed for the balance. Mr. Nettle had to invest $32,000 cash in the business to enable it to pay the $100,000 cash. Mr. Nettle withdraws $2,800 cash per month for personal use. 4.value: 4.00 pointsRequired information Required: 1. Prepare balance sheets for the business as of December 31, 2012 and 2013. ReferenceseBook & Resources WorksheetLearning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.Learning Objective: 02-C2 Describe an account and its use in recording transactions. Difficulty: HardLearning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.Learning Objective: 02-P3 Prepare financial statements from business transactions. Check my work 5.value: 3.00 pointsRequired information 2. By comparing equity amounts from the balance sheets and using the additional information presented in this problem, prepare a calculation to show how much net income was earned by the business during 2013. rev: 09_25_2013_QC_36421 ReferenceseBook & Resources WorksheetLearning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements.Learning Objective: 02-C2 Describe an account and its use in recording transactions. Difficulty: HardLearning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition.Learning Objective: 02-P3 Prepare financial statements from business transactions. Check my work 6.value: 3.00 pointsRequired information 3. Compute the 2013 year-end debt ratio for the business