Using the given information answer the following required questions:

a$-1.)$Compute the current ratio for Clayton$$s management.

Note: Round your answers to $2$ decimal places. a$-2.)$ Compute the debt$-$to$-$assets ratio for Clayton$$s management.

Note: Round your answers to $1$ decimal place. B$).$ Assume that after the funds are invested, EBIT amounts to $$18,800.$ Also assume the company pays $$4,200$ in dividends or $$4,200$ in interest depending on which source of financing is used. Based on a $40$ percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option.