Income Statement and Balance Sheet The adjusted trial balance for the year of Schneider Corporation at October 31, 2018, follows !!! (Click the icon to view the adjusted trial balance.) Read the requirements Begin by preparing Schneider's 2018 Income statement (Check your spelling carefully and do not abbreviate Use only the account names pros Schneider Corporation Income Statement Year Ended October 31, 2018 Revenue Expenses Income before tax Income tax expense Net income Schneider Corporation Balance Sheet October 31, 2018 Assets Liabilities Totallaties Stockholders' Equity Total stockholders equity Total abilities and stockholders' equity Total assets Requirement 2. Schneider's lenders require that the company maintain a debt ratione higher than 0.50. Calculate Schneider's debtrato at October 31, 2018 to determine whether the company is in compl with this debt restriction If not, suggest a way that Schneider could have avoided this difficult situation Begin by selecting the labels and then enter the amounts to compute Schneider's debt ratio at October 31, 2018 Round your action to two decimal places Debt ratio with this debt restriction at October 31, 2018 Schneider's lenders require that the company maintain a debt ratione higher than 0.50. Schneider is pora A Data Table neid Bale Octo Credit 19,600 Schneider Corporation Adjusted Trial Balance October 31, 2018 Account Debit Cash 15,000 Accounts receivable Supplies 2,600 Prepaid rent 2,100 Equipment 37,300 Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends 3,000 Service revenue Depreciation expense-equipment 1.100 Salary expense 40,500 Rent expense 4,100 8,900 1,050 400 2,800 19,000 16,000 4,000 compa chneide to determine unts to 91,950 Jes.) ain a del 31, 2018 nput fiel Print Done Rent expense 10,300 3,200 Interest expense Insurance expense 4,200 Supplies expense 2,700 6,600 Income tax expense $ 148,200 $ 148,200 Total Print Done

Retained earnings in adjusted trial balance is treated as its opening balance, assuming no other movement in retained earnings account. Supplies are stock of consumables. They are written off as supplies expense once they are consumed. Unearned service revenue is payment received in advance from customers. 91,950 Schneider Corporation Income Statement Year ended October 31, 2018 Revenue: Service revenue $ Expenses: Depreciation expense - equipment $ 1,100 Salary expense 40,500 Rent expense 10,300 Interest expense 3,200 Insurance expense 4,200 Supplies expense 2,700 $ Income before tax $ Income tax expense $ Net Income $ 62,000 29,950 6,600 23,350 Schneider Corporation Statement of Retained Earnings Year ended October 31, 2018 Retained Earnings 4,000 $ 23,350 (3,000) 24,350 Beginning Balance Add: Net Income Less: Dividends Ending Balance Assets Current Assets Cash Accounts receivable Supplies Prepaid rent Schneider Corporation Balance Sheet October 31, 2018 Liabilities Accounts payable $ 15,000 Interest payable $ 19,600 Unearned service revenue $ 2,600 Income tax payable $ 2,100 Note payable Total liabilities Stockholders' Equity Common Stock 37,300 Retained Earnings (4,100) $ 33,200 Total stockholders' equity $ $ $ $ $ $ 8,900 1,050 400 2,800 19,000 32,150 Fixed Assets Equipment Less: Accumulated depreciation - equipment $ $ $ $ $ 16,000 24,350 40,350 Total assets $ 72,500 Total liabilities and stockholders' equity $ 72,500 .