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Selected financial data for Wilmington Corporation is presented below. Wilmington Corporation Balance Sheet As of December 3 1 Year 7 Year 6 Current Assets Cash

Selected financial data for Wilmington Corporation is presented below.
Wilmington Corporation
Balance Sheet
As of December 31
Year 7
Year 6
Current Assets
Cash and cash equivalents
$ 634,527
$ 335,597
Marketable securities
166,106
187,064
Accounts receivable (net)
284,226
318,010
Inventories
466,942
430,249
Prepaid expenses
60,906
28,060
Other current assets
83,053
85,029
Total Current Assets
1,695,760
1,384,009
Property, plant and equipment
1,384,217
625,421
Long-term investment
568,003
425,000
Total Assets
$3,647,980
$2,434,430
Current Liabilities
Short-term borrowings
$ 306,376
$ 170,419
Current portion of long-term debt
155,000
168,000
Accounts payable
279,522
314,883
Accrued liabilities
301,024
183,681
Income taxes payable
107,509
196,802
Total Current Liabilities
1,149,431
1,033,785
Long-term debt
500,000
300,000
Deferred income taxes
236,519
288,644
Total Liabilities
$1,885,950
$1,622,429
Common stock
$ 425,250
$ 125,000
Additional paid-in capital
356,450
344,335
Retained earnings
980,330
342,666
Total Stockholders' Equity
1,762,030
812,001
Total Liabilities and Stockholders' Equity
$3,647,980
$2,434,430
Selected Income Statement Data for the year ending December 31, Year 7:
Net sales
$4,885,340
Cost of goods sold
(2,906,526)
Selling expenses
(884,685)
Operating income
1,094,129
Interest expense
(55,240)
Earnings before income taxes
1,038,889
Income tax expense
(401,225)
Net income
$ 637,664
Selected Statement of Cash Flow Data for the year ending December 31, Year 7:
Cash flows from operations
$1,601,692
Capital expenditures
$745,862
Wilmington Corporations free operating cash flow to total debt ratio in Year 7 was:
Group of answer choices
1.18
1.39
0.89
0.45

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