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Information from Nue Company's financial statements is provided below. 2013 2012 Current liabilities $250 000 $170 000 Non-current liabilities 130 000 340 000 Shareholders' equity

Information from Nue Company's financial statements is provided below.

2013

2012

Current liabilities

$250 000

$170 000

Non-current liabilities

130 000

340 000

Shareholders' equity

440 000

560 000

Net cash flows from operating activities

70 000

61 000

Interest and principal payments

14 000

9 000

Net sales

475 000

450 000

Total comprehensive income

90 000

72 000

Interest expense

7 500

13 500

Income tax

18 000

12 500

Dividends paid to ordinary shareholders

16 000

28 000

The debt-to-equity ratio for 2013 is:

an indicator that Nue Company's reliance on shareholders for funding increased from 2012 to 2013

an indicator that Nue Company's ability to meet current interest payments to creditors is increasing

increasing slightly from 2012 to 2013

an indicator that for every $1 of capital that has been provided by shareholders, creditors provided $0.86

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