The adjusted trial balance for the year of Nelson Corporation at October 31, 2018, follows. E (Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Prepare Nelson Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Nelson's 2018 income statement. Nelson Corporation Income Statement Year Ended October 31, 2018 Income before tax MI - Data table Nelson Corporation Adjusted Trial Balance October 31, 2018 Account Debit Credit Cash $ Accounts receivable 15,000 19,500 2,200 1,400 37,300 $ 4,400 9,600 1,100 Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue 600 2,400 18,100 13,000 3,000 8,000 99.300 Data table 37,300 $ 4,400 9,600 1,100 600 Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends 2,400 18,100 13,000 3,000 8,000 99,300 1,000 Service revenue Depreciation expense equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense 39,800 10,400 3,300 3,400 3,000 7,200 Total $ 151,500 $ 151,500 Requirements a 1. Prepare Nelson Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. 2. Nelson's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Nelson's debt ratio at October 31, 2018, to determine whether the company is in compliarte with this debt restriction. If not, suggest a way that Nelson could have avoided this difficult situation