Which of the following subsequent events could have a negative impact on a company's debt$-$to$-$equity

ratio computed using the information reported on the company's balance sheet for the year ended

December $31,$ Year $1?$

Assume that the company files its financial statements with the Securities and Exchange Commission

and that its financial statements were issued February $4,$ Year $2.$

A$.$ A fire that destroyed all of the company's office buildings and warehouses $($all uninsured$)$ on

January $18,$ Year $2.$

B$.$ A lawsuit that was filed against the company on February $22,$ Year $2.$

C$.$ A lawsuit that was filed against the company on October $12,$ Year $1,$ and settled on January $2,$

Year $2.$

D$.$ The bankruptcy of a major customer on February $2,$ Year $2.$