Use following information to calculate Financial Leverage (FLEV) for Walmart for 2011:

Walmart

INCOME STATEMENT 2010 2011

TOTAL REVENUE 421,849

OPERATING EXPENSES 396,307

OPERATING PROFIT (EBIT) 25,542

Non-operating Expenses(Net Interest expense) 2,004

TAXABLE PROFIT (EBT) 23,538

Tax 7,579

NET INCOME FROM CONTINUED OPERATIONS 15,959

BALANCE SHEET 2010 2011 AVERAGE

OPERATING ASSETS 162,360 173,137 167,749

NON-OPERATING ASSETS 8,047 7,526 7,787

TOTAL ASSETS 170,407 180,663 175,535

OPERATING LIABILITY 56,040 59,097 57,569

NON-OPERATING LIABILITY 41,719 50,319 46,019

SH EQUITY 72,648 71,247 71,948

TOTAL LIAB + EQUITY 170,407 180,663 175,535

A. 3.41

B. 1.27

C. 0.23

D. 0.98

E. 0.53