This question relates to the following C Manufacturings 2020 Income Statement and Balance Sheet:

Assuming C Manufacturings' management wanted to increase business by using a Sustainable Growth Rate, there is no change in dividend or tax rate and that all asset accounts vary proportionately to sales, what would their new Total Debt to Equity ratio be in 2021?

1.

0.52

2.

0.75

3.

0.63

4.

0.41

5.

0.46

C. Manufacturine 2020 lncome State ment