Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet Dec. 31, Year 7 Dec. 31, Year 6 $548,001 166,106 245 468 403.268 52.601 83,059 1,498,497 1.384217 568,003 53.450,217 $289.834 187,064 274645 371.578 24,234 85,029 1.232384 625,421 425,000 $2,282,805 Current Assets Cash and cash equivalents Marketable securities Accounts receivable (net) Inventories Prepaid expenses Other current assets Total Current Assets Property, plant and equipment Long term investment Total Assets Current Liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Income taxes payable Total Current Liabilities Long term debt Deferred income taxes Total Liabilities Common stock Artistas 5306376 155,000 241.405 259.975 92.848 1,055,604 500,000 204, 266 1,759,870 5425,250 5170419 168,000 221944 158,634 169,965 998.962 300,000 249,284 1.488,246 $125,000 2133 25650 Accrued liabilities Income taxes payable Total Current Liabilities Long-term debt Deferred income taxes Total Liabilities Common stock Additional paid-in capital Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 259.975 92,848 1,055,604 500,000 204 266 1.759,870 $425,250 356,450 909,147 1,690,847 $3.450,217 158,634 169,965 938,962 300,000 249,284 1,488,246 $125,000 344,335 325,224 794,559 $2,282,805 Selected Income Statement Data for the year ending December 31, Year 7 Net sales Cost of goods sold Selling expenses Operating income Interest expense Earnings before income taxes Income tax expense Net income $4,885,340 (2.960.267) (884,685) 1,040,388 (55,240) 985,148 (401,225) $583.923 Selected Statement of Cash Flow Data for the year ending December 31, Year 7 Cash flows from operations Capital expenditures $1,383,280 5745,862 Return to course Earnings before income taxes Income tax expense Net income 985,148 (401,225) 5583,923 Selected Statement of Cash Flow Data for the year ending December 31, Year 7 Cash flows from operations Capital expenditures $1,383,280 $745,862 Required Wilmington Corporation's financial leverage in Year 7 was: Select one: a. 2.31 O b. 0.43 c. 0.49 d. 2.04