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Calculate the financial leverage (assets/equity) Income Statement Data Sales 1200 150 Operating Income Depreciation 35 Interest Expense 25 Pretax Income 90 Income Taxes 35 Net

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Calculate the financial leverage (assets/equity) Income Statement Data Sales 1200 150 Operating Income Depreciation 35 Interest Expense 25 Pretax Income 90 Income Taxes 35 Net Income after tax 55 Balance Sheet Data Fixed Assets 200 Total Assets 500 175 Working Capital Total Debt 125 Equity 250 Select one: O a. 1 O b. 5 O c. 8 O d. 2 O e. 9

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