Exhibit 4.1 5 The balance sheet and income statement shows below are for de me. Note that before marrin charge do wytwo delt must be retired during the next years, and the notes while will be rolled 6. 7. 9. 10 11. Balance Sheet (Millions of 3) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment . Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities 2018 $3.000 15,000 18.000 $36.000 524,000 560,000 12 13. 14 15. $1,630 8.370 6,000 533,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 59.000 $42.000 $5,040 12,960 $18,000 $60,000 Income Statement (Millions of ) Net sales Operating costs except depreciation Depreciation Seniofactors 2018 584,000 78,120 1,680 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $18,630 8,370 6,000 $33,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $9,000 $42,000 $5,040 12,960 $18,000 $60,000 Income Statement (Millions of 5) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 2018 $84,000 78,120 1,680 $4,200 900 $3,300 1,320 $1,980 Other data: Shares outstanding (millions) Common dividends (millions of $) Intrate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $693.00 6% 4096 $47.52 Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 1,680 $4,200 900 $3,300 1,320 $1,980 Other data: Shares outstanding (millions) 500.00 Common dividends (millions of 5) $693.00 Int rate on notes payable & L-T bonds 6% Federal plus state income tax rate 40% Year-end stock price $47.52 Refer to Exhibit 4.1. What is the firm's current ratio? Do not round your intermediate calculations, O a. 1.23 O b. 1.09 O c. 1.17 d. 0.87 e. 0.85