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Prepare Nichol Corporations 2018 single-step income statement, statement of returned earnings, and balance sheet.

Requirements 1. Prepare Nicholl Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. 2. Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Nicholl's debt ratio at May 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Nicholl could have avoided this difficult situation. Print Done 1Data Table Nicholl Corporation Adjusted Trial Balance May 31, 2018 Account Debit Credit $ 12,000 19,600 2,700 1,400 36,900 Cash Accounts receivable 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 Depreciation expense-equipment Salary expense Rent expense Interest expense $4,800 8,700 200 900 2,600 19,000 15,000 3,000 10,000 98,300 2,000 40,500 10,800 3,300 Print Done Requirement 1. Prepare Nicholl Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Nicholl's 2018 income statement. Nicholl Corporation Income Statement Year Ended May 31, 2018 Income before tax Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Nicholl Corporation Balance Sheet May 31, 2018 Assets Liabilities Stockholders' Equity Less: Requirement 2. Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50, Calculate Nicholl's debt ratio at May 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Nicholl could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Nicholl's debt ratio at May 31. 2018. (Round your caloulation to two decimal places.) Debt ratio Nicholl's lenders require that the company malntain a debt ratio no higher than 0.50. Nicholl is with this debt restriction at May 31, 2018