X Co. has the following information:

Sale $ 1,200,000

Cost of sales $800,000

Operating expenses $200,000

current liabilities $120,000

Non-current liabilities $200,000

share capital $ 500,000

Retained earnings $ 300,000

the gross margin ratio is

a.

34%

b.

17%

c.

20%

d.

3 x

X Co. reported total assets 500,000, current liabilities 80,000, non-current liabilities 100,000 and equity 320,000. Leverage ratio is

a.

56.25%

b.

20%

c.

45%

d.

23.81%