You are provided the following information. Determine the debt to equity ratio, with 4 decimal positions, at the end of month 4

Sales	115,000
Gross margin	45%
Salary expense %	12%
Other expense %	14%
Interest rate	7%
Income tax rate	18%
Monthly sales growth rate	0.93%
Days receivable	35
Days inventory	45
Days payable	30
Fixed assets	165,000
Life of fixed assets	10 years
Investment	100,000
Initial debt to equity	2.00

Other information needed:

• Salaries are paid at the end of the month
• Other expenses are incurred equitably throughout the month and accrued in accounts payable and paid on the 30^th day after incurred.
• Sales occur equitably throughout the month.
• Days inventory is maintained throughout the month.
• All inventory purchases are on credit.
• Income tax is paid quarterly (in month 3)
• The cash balance at the end of the month should always be $25,000. If it is over, pay down the debt with the excess, if it is under borrow enough to have a $25,000 balance.
• No dividends are paid.

Some hints:

• No money is received from customers in the first month.
• The only expenses paid in the first month are salary and interest, the rest are in accounts payable.
• Purchases of inventory in the first month are enough to cover what was sold plus 45 days inventory.
• Purchases of inventory in the second month is enough to cover what was sold plus the incremental amount of inventory required since what was sold increased.
• Your cash beginning is the proceeds from the sale of stock, the issuance of debt, less the cost of the fixed assets.