Lozano Chip Company: Balance Sheet as of December 31, 2013 (Thousands of Dollars)

Cash	$225,000		Accounts payable	$601,866
Receivables	1,575,000		Notes payable	326,634
Inventories	1,125,000		Other current liabilities	525,000
Total current assets	$2,925,000		Total current liabilities	$1,453,500
Net fixed assets	1,350,000		Long-term debt	1,068,750
			Common equity	1,752,750
Total assets	$4,275,000		Total liabilities and equity	$4,275,000

Lozano Chip Company: Income Statement for Year Ended December 31, 2013 (Thousands of Dollars)

Sales	$7,500,000
Cost of goods sold	6,375,000
Selling general and administrative expenses	825,000
Earnings before interest and taxes (EBIT)	$300,000
Interest expense	111,631
Earnings before taxes (EBT)	$188,369
Federal and state income taxes (40%)	75,348
Net income	$113,022

What is theTotal debt/Total assets ratio? Incorrect answers: 34%