The adjusted trial balance for the year of Balsamo Corporation at July 31, 2018, follows. (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare Balsamo Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Balsamo's 2018 income statement. Balsamo Corporation Income Statement Year Ended July 31, 2018 Requirements Income before tax 1. Prepare Balsamo Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. 2. Balsamo's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Balsamo's debt ratio at July 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Balsamo could have avoided this difficult situation. Print Done -