Today is September $30.$ You are the Controller of Company $x.$ Company $x$ has a covenant with its lenders whereby the Company cannot exceed a debt to equity ratio of $1\mathrm{.}15,$ calculated at each month end. The CFO has asked you to identify whether Company $x$ is currently in breach of its covenant and if so$,$ how Company $x$ could remedy the situation. Company X$\text{'}$s balance sheet as at September $30$ statements shows the following information: $(1$ Mark$)$

$\backslash$table$[[$Cash$,8,000],[$Accounts Receivable,$4,500],[$Property$,$ Plant and Equipment,$7,000],[$Goodwill$,3,000],[$Prepaid Expenses,$400],[$Account Payable,$1,350],[$Current Portion of Long$-$Term Debt,$500],[$Wadges and Bonuses Payable,$500]]$