1. The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.

   Account End of current year End of Prior Year

   Net sales revenue (all credit) $1,420,000

   Cost of goods sold $925,000

   Gross profit $495,000

   Selling/general expenses $280,000

   Interest expense $42,000

   Net Income $173,000

   Current assets $115,000 $82,000

   Long-term assets $510,000 $440,000

   Total assets $625,000 $522,000

   Current liabilities $59,000 $52,000

   Long-term liabilities $273,000 $245,000

   Common stockholders' equity $293,000 $225,000

   Total liabilities and stockholders' equity $625,000 $522,000

   Inventory and prepaid expenses account for $30,000 of the current year's current assets.

   Average inventory for the current year is $36,250.

   Average net accounts receivable for the current year is $45,000.

   There are 35,000 shares of common stock outstanding.

   Total dividends paid during the current year were $17,000.

   The market price per share of common stock is $20.

   What is the debt ratio for the current year?

   	a.	0.53
   	b.	1.95
   	c.	1.90
   	d.	0.51