The adjusted trial balance for the year of Dreamer Corporation at October $31,2021,$ follows.

Read the requirements.

Data table

Requirement $1.$ Prepare Dreamer Corporation's $2021$ single$-$step income statement, statement of retained earnings, and balance sheet.

Begin by preparing Dreamer's $2021$ income statement.

Dreamer Corporation

Income Statement

Year Ended October $31,2021$

Requirements

Prepare Dreamer Corporation's $2021$ single$-$step income statement, statement

of retained earnings, and balance sheet.

Dreamer's lenders require that the company maintain a debt ratio no higher

than $0\mathrm{.}50.$ Calculate Dreamer's debt ratio at October $31,2021,$ to determine

whether the company is in compliance with this debt restriction. If not, suggest

a way that Dreamer could have avoided this difficult situation.

Dreamer Corporation

Adjusted Trial Balance

October $31,2021$