PASSAGE Ple The following information have been taken from the balance sheet of Preet limited: Year 2020: Common stockholders' equity: $3,500,000 Preferred stock -99%: $1,400,000 Bonds payable -6%: $1,600,000 Year 2021: Common stockholders' equity: $2,800,000 Preferred stock -99%: $1,800,000 Bonds payable - 6%: $1,400,000 ed: Year 2020: payable-6% 996: $1,800,000 7:6 Please read the passage carefully and select the correct answer (2 Mark) Use of calculator is allowed for numerical questions. What is the capital gearing ratio for the year 2020? OPTIONS 8:6 1:6 6:7 ear 2020: able-6%: $1,800,000 Please read the passage carefully and select the correct answer (2 Mark) Use of calculator is allowed for numerical questions. What is the capital gearing ratio for the year 20217 OPTIONS 8:6 7:6 7:8 5:6 limited: Year 2020: Bonds payable-6%: ock-996: $1,800,000 Please read the passage carefully and select the correct answer (2 Mark).Use of calculator is allowed for numerical questions. in which year the company is Highly geared? OPTIONS 2021 2020 Both the years The capital was never highly geared 2020: de-6%: 800,000 Please read the passage carefully and select the correct answer (2 Mark).Use of calculator is allowed for numerical questions. in which year the company is Low geared? OPTIONS 2021 2020 Both the years The capital was never low geared