Fayer Corporation has provided the following financial data: Balance Sheet December 31, Year 2 and Year 1 Assets Year 2 Year 1 Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Current liabilities: 161,000 180,000 110,000 130,000 181,000 160,000 57,000 70,000 509,000 540,000 1,044,000 960,000 $ 1,553,000 $1,500,000 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Notes payable, short term Total current liabilities $ 188,000 160,000 57,000 60,000 36,000 40,000 281,000 260,000 200,000 200,000 481,000 460,000 200,000 200,000 80,000 80,000 792,000 1,072,000 760,000 1,040,000 $1,500,000 Bonds payable Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $ 1,553,000 Income Statement For the Year Ended December 31, Year 2 Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (35%) Net income $ 1,220,000 760,000 460,000 389,846 70,154 14,000 56,154 19,654 $ 36,500 Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share The company's debt-to-equity ratio at the end of Year 2 is closest to Multiple Choice 0.45 0.22 O027 0.19