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

Which of the following statements is true concerning Nue's debt management activities?

		Nue Company improved its debt-to-equity ratio
		The company relied more on creditors for financing during 2013 than in 2012
		The company has a smaller percentage of capital from shareholders at the end of 2013 than at the end of 2012
		Relative to 2012, Nue Company is in a weaker position at the end of 2013 to finance capital expenditures from cash flow generated by operating activities