Three years of balance sheets for a very profitable furniture manufacturer at its seasonal low point of accounts receivable and inventory are as follows: 20Y1 20Y2 2Y S 42 $62 (000s) $51 Cash Accounts receivable 28 135 44 317 Inventory Total current assets 173 210 503 243 316 Net ad assets 75 87 Patents &trademarks Total non-current assets Z1 $314 $393 $597 24 Total assets S 85$103 $197 Short-term dect Current porticn LTD Accounts payable 4 4 4 51 65 84 Accrued expenses 34 42 76 cher current lablites Total current liabilites 177 219 368 Long-term debt 12 189 227 Total liabilities 372 125 16 $314 $393 $597 OWners equity Total liablities and equity 225 Total lablites to Tangble net worth 16 14 1,7 Which of the following most accurately describes the company's capital structure? The company's leverage is fairty stable, though rising, and about half of the short-term debt should be replaced by long-term debt since the company is at ts seasonal low point. The company's leverage is fairly stable, though rising slightly: but most, if not all, of the short-term debt should be replaced by long-term sources since the company is at its seasonal low point The company's leverage has improved since 20Y1, and the distribution of short- and long term debt is about right since it is fairly equal. The company's leverage is fluctuating and the distribution of short- and long-term debe is about right even though the company appears unable to clean up its line of credit