The financial statements of Snapit Company are given below. Snapit Company Income Statement (2009) Sales $ 4,000,000 Cost of goods sold 3,040,000 Gross profit 960,000 Selling & administrative expenses 430,000 Operating profit 530,000 Interest expense 160,000 Income before tax 370,000 Tax expense 148,000 Net income $ 222,000 Balance Sheet 2009 2008 Cash $ 60,000 $50,000 Accounts receivable 550,000 500,000 Inventory 690,000 620,000 Total current assets $ 1,300,000 $1,170,000 Fixed assets 1,300,000 1,230,000 Total assets $ 2,600,000 $2,400,000 Accounts Payable $ 270,000 $ 250,000 Bank loan 580,000 500,000 Total current liabilities $ 850,000 $ 750,000 Bond payable 900,000 1,000,000 Total liabilities $ 1,750,000 $1,750,000 Common stock (130,000 shares) $ 250,000 $ 250,000 Retained earnings 600,000 400,000 Total liabilities & equity $ 2,600,000 $2,400,000 Note: The common shares are trading in the stock market for $100 each. Refer to the financial statements of Snapit Company. The firm's leverage ratio for 2009 is 2.25. 3.53. None of the options are correct. 3.06. 0 2.61. The financial statements of Snapit Company are given below. Snapit Company Income Statement (2009) Sales $ 4,000,000 Cost of goods sold 3,040,000 Gross profit 960,000 Selling & administrative expenses 430,000 Operating profit 530,000 Interest expense 160,000 Income before tax 370,000 Tax expense 148,000 Net income $ 222,000 Balance Sheet 2009 2008 Cash $ 60,000 $50,000 Accounts receivable 550,000 500,000 Inventory 690,000 620,000 Total current assets $ 1,300,000 $1,170,000 Fixed assets 1,300,000 1,230,000 Total assets $ 2,600,000 $2,400,000 Accounts Payable $ 270,000 $ 250,000 Bank loan 580,000 500,000 Total current liabilities $ 850,000 $ 750,000 Bond payable 900,000 1,000,000 Total liabilities $ 1,750,000 $1,750,000 Common stock (130,000 shares) $ 250,000 $ 250,000 Retained earnings 600,000 400,000 Total liabilities & equity $ 2,600,000 $2,400,000 Note: The common shares are trading in the stock market for $100 each. Refer to the financial statements of Snapit Company. The firm's leverage ratio for 2009 is 2.25. 3.53. None of the options are correct. 3.06. 0 2.61