WILMINGTON CORPORATION Balance Sheet Dec 31, Year 7 Dec 31, Year 6 Current Assets Cash and cash equivalents Marketable securities Accounts receivable (net) Inventories Prepaid expenses Other current assets Total Current Assets Property, plant and equipment Long-term investment Total Assets Current Liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Income taxes payable Total Current Liabilities Long term debt Deferred Income taxes Total Liabilities Common stock $548,001 166, 106 245,468 403,268 52,601 83,053 1.498.497 1.384,217 568,003 53.450,717 $289,834 187,064 274,645 371,578 24 234 85,029 1.232,384 625,421 425.000 $2,282,805 5306,376 155.000 241,405 259,975 92.848 1,055,604 500,000 204,266 1.759,870 $425.250 $170,419 168,000 271944 158.634 169,965 938,962 300,000 249,284 1.488.246 $125.000 $3.450,712 $2.282.805 Total Assets Current Liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Income taxes payable Total Current Liabilities Long term debt Deferred income taxes Total abilities Common stock Additional paid in capital Retained earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 5306376 155.000 241.405 259.975 92.848 1,055,604 500.000 204 266 1.759,870 $425,250 356,450 909, 147 1,690,847 53.450,712 $170,419 168,000 271.944 158,634 169,965 938,962 300,000 249.284 1,488.246 $125,000 344,335 325,224 794.559 $2,282,805 Selected Income Statement Data for the year ending December 31, Year 7 Net sales Cost of goods sold Selling expenses Operating income Interest expense Earnings before income taxes Income tax expense Net income 54.885.340 (2.960,267 (684685) 1.040,388 155.240) 985148 (401 225) 3583,923 Operating income Interest expense Earnings before income taxes Income tax expense Net Income 1,040,388 (55,240) 985,148 (401,225) 5583,923 Selected Statement of Cash Flow Data for the year ending December 31, Year 7 Cash flows from operations Capital expenditures $1,383, 280 $745862 Required Wilmington Corporation's financial leverage in Year 7 was: Select one: O a. 2.31 b. 0.43 c. 0.49 O d. 2.04 Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet Dec. 31, Year 7 Dec. 31, Year 6 Current Assets Cash and cash equivalents Marketable securities Accounts receivable (net) Inventories Prepaid expenses Other current assets Total Current Assets Property, plant and equipment Long-term Investment Total Assets Current Liabilities Short-term borrowings Current portion of long-term debt Accounts payable Accrued liabilities Income taxes payable Total Current Liabilities Long-term debt Deferred income taxes Total Liabilities Common stock $519,159 166,106 232,548 382,044 49,832 83,053 1,432,742 1,384,217 568,003 $3,384,962 $274,579 187,064 260,190 352,022 22,958 85,029 1,181,842 625,421 425,000 $2,232,263 $306,376 155,000 228,700 246,292 87,962 1,024,330 500,000 193,515 1.717,845 $425,250 $170,419 168,000 257,631 150.285 161,020 907,355 300,000 236,164 1,443,519 $125,000 TO course 1,252,7492 1,384,217 568,003 $3,384,962 17517842 625,421 425,000 $2,232,263 TO currencies Property, plant and equipment Long-term investment Total Assets Current Liabilities Short-term borrowings Current portion of long term debt Accounts payable Accrued liabilities Income taxes payable Total Current Liabilities Long-term debt Deferred income taxes Total Liabilities Common stock Additional paid in capital Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $306,376 155,000 228,700 246,292 87.962 1,024,330 500,000 193,515 1.717,845 $425,250 356,450 885,417 1,667,117 $3,384,962 $170,419 168,000 257,631 150,285 161,020 907,355 300,000 236,164 1,443,519 $125,000 344,335 319,409 788,744 $2.232.263 Selected Income Statement Data for the year ending December 31, Year 7 Net sales Cost of goods sold Selling expenses Operating income Interest expense Earnings before income taxes Income tax exnense $4,885,340 (2,978,182) (884,685) 1,022,473 (55,240) 967,233 1401 225) Selectea income statement Data Tor the year ending wecember 5, Year / Net sales 54,885,340 Cost of goods sold (2,978,182) Selling expenses (884,685) Operating income 1,022,473 Interest expense (55,240) Earnings before income taxes 967.233 Income tax expense (401,225) Net income $566,008 Selected Statement of Cash Flow Data for the year ending December 31, Year 7 Cash flows from operations Capital expenditures $1,310,476 5745,862 Required Wilmington Corporation's total debt to equity ratio in Year 7 was: Select one: a. 0.48 b. 1.03 C 0.28 d. 0.58