Required information Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet,...
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Required information
Problem 2-5A (Algo) Computing net income from equity analysis, preparing a balance sheet, and computing the debt ratio LO A2, P1
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[The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 and Year 2.
December 31
Year 1
Year 2
Cash
$ 48,814
$ 8,493
Accounts receivable
26,497
20,773
Office supplies
4,180
3,061
Office equipment
128,303
136,668
Trucks
50,206
59,206
Building
0
167,368
Land
0
41,767
Accounts payable
69,660
34,550
Note payable
0
109,135
Problem 2-5A (Algo) Part 2
2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During Year 2, the owner invested $34,000 additional cash in the business in exchange for common stock, and the company paid a $42,000 cash dividend.
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