BALANCE SHEET ' Cash $1,000.0 Accounts payable Accts. Receivable Notes payable $1,000.0 2,000.0 3,000.0 Inventories 1,000.0 Accruals 500.0 Total current assets $5,000.0 Total current liabilities $3,500.0 Long-term bonds 5,000.0 Total debt $8,500.0 Common stock (5,000 shares) 500.0 Retained earnings 11,000.0 Net plant & equip. 15,000.0 Total common equity $11,500.0 Total assets $20,000.0 Total liabilities & equity $20,000.0 INCOME STATEMENT Net sales Operating costs (Cost of Goods Sold) $ 10,000.0 6,000.0 EBIT Less: Interest EBT Less: Taxes Net income $ 4,000.0 600.0 $ 3,400.0 1,000.0 $ 2,400.0 Calculate the following financial ratio for this company: Debt-to-Equity A. 0.78 OB. 0.61 OC. 0.43 OD. 1.35 E. 0.74 OF. 3.54