Chestnut, Inc. reported the following balances on its balance sheet at December 31, Year 1: Total Assets $264,000? Total Liabilities $86,000? Common Stock83,000? Retained Earnings95,000? Total Equity 178,000? Total Liabilities and Equity $264,000? On January 1, Year 2, Chestnut purchased equipment for $57,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment? (Round your answer to 2 decimal places.)
A. 0.35
B. 0.33
C. 0.45
D. 0.44
Answer: C
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