Question 12 0.5 pts Questions 12 - 14 are based on the same information The financial statements of Black Barn Company are given below. Black Barn Company Income Statement Sales Cost of goods sold Gross profit Selling & administrative expenses Operating profit Interest expense Income before tax Tax expense Net Income 2009 $8,000,000 5,260,000 2,740,000 1,500,000 1,240,000 140,000 1,100,000 440,000 $ 660,000 Balance Sheet Cash Accounts receivable Inventory Total current assets Fixed assets Total assets 2009 $ 200,000 1.200,000 1,840,000 $3,240,000 3,200,000 $6,440,000 2008 s 50,000 950,000 1,500,000 $ 2,500,000 3,000,000 $5,500,000 Accounts payable $ 800,000 Bank loan 600,000 Total current liabilities $1,400,000 Bond payable 900,000 Total liabilis $ 2,300,000 Common stock (130,000 shares) $ 300,000 Retained earnings 3,840,000 Total liabilities & equity $6,440,000 $ 720,000 100,000 $ 820,000 1,000,000 $1,820,000 $ 300,000 3,380,000 $5,500,000 Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company. The firm's financial leverage ratio for 2009 is O 1.47 1.69 O 1.23 O 1.53