The income statement for the year ended December 31, 20X6, for Total Inc. contains the following information: Total Inc. Income Statement Year Ended December 31, 20X6

Sale	$50,000
Cost of goods sold	$30,000
Gross Profit	$20,000
Operating Expenses	$15,000
Profit from Operations	$5,000
Income Tax Expense	$3,000
Profit	$2,000

Total Inc. comparative balance sheet at December 31

	20X6	20X5
Cash	$1,200	$1,000
Accounts Receivable	$300	$1,500
Inventory	$5,000	$3,000
Equipment	$12,000	$8,000
Accumulated Depreciation - equipment	$(4,000)	$(2,000)
Total Assets	$14,500	$11,500
Account Payable	$1,000	$3,500
Long-term Notes Payable	$2,000	$-
Common shares	$10,000	$8,000
Retained Earnings	$1,500	$-
Total Liabilities & Shareholders' Equity	$14,500	$11,500

Additional Information: 1. Operating expenses include depreciation expense of $2,500 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $2,000 was sold for $1,500 cash 4. New equipment was purchased during the year for $5,000 5. Common shares were sold for $2,000 cash Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as 13%)

The equity ratio at December 20X5 was:

Between 0.62 and 1.67

Equal or above 1.68

Equal or below 0.40

Not enough data provided to calculate it

Between 0.41 and 0.61