Balance Sheet (Thousands of Dollars) Income Statement (Thousands of dollars) Year 1 S Current Assets Cash Marketable Securities Accounts Receivable Inventories Prepaid Expenses Total Current Assets $ $ $ $ $ $ $ 5,500.00 4,500.00 5,000.00 7,500.00 2,500.00 25,000.00 $ 1,500.00 $ 2,000.00 $ 1,500.00 $ 5,000.00 Current Liabilities Accounts Payable Short-Term Notes Payable Accrued Liabilities Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Long-Term Liabilities Total Liabilities Equity Preferred Stock Common Stock Retained Earnings Total Equity Total Liabilities and Equity Revenues (Sales) - Cost of Goods Sold - Operating Expenses Operating Income (EBIT) - Interest Expense Taxable income - Taxes Net Income 7,000 (2,781) (1,809) 2,410 (190) 2,220 (434) 1,786 $ 20,000.00 $20,000.00 $ 25,000.00 $ Long-Term Assets Property, Plant, and Equipment Less: Accumulated Depreciation Net Property, Plant, and Equipment Intangible Assets Total Net Long-Term Assets Total Assets $ $ $ $ $ $ 17,000.00 2,000.00 15,000.00 10,000.00 25,000.00 50,000.00 $ 5,000.00 $ 10,000.00 $ 10,000.00 $ 25,000.00 $50,000.00 Debt management ratios are a type of financial ratio that shows how the firm has financed its assets as well as the firm's ability to repay its long-term debt. Total Debt to Total Capital, shown here, is one type of debt management ratio. Use the data from the financial statements above to calculate the Total Debt to Total Capital ratio. Total Debt Total Debt Total Debt to Total Capital = Total Capital Total Debt + Equity 46.8% 48.9% O 45.2% O 52.5%