Given the following information, what is the firm's debt ratio? BALANCE SHEET INFORMATION Cash = $1,070,000 Accounts receivable = (not given) Inventory = $1,140,000 Fixed Assets = $3,830,000 Total assets = $7,100,000 Accounts payable = (not given) Long-term debt = $3,600,000 Common stock = $780,000 Retained earnings = $2,310,000 Total liabilities and equity = $7,100,000 INCOME STATEMENT INFORMATION Sales = $28,400,000 Operating expense = $23,860,000 EBIT = $4,540,000 Interest expense = $504,000 EBT = $4,036,000 Taxes = $1,614,000 Net Income = $2,422,000 Question 9 options: 1) 56.48% 2) 50.70% 3) 43.52% 4) 94.23% 5) 89.01%