Refer to the following selected financial information from Gomez Electronics. Compute the company's debt-to-equity ratio for Year 2. Year 2Year 1Net sales$478,500 $426,250 Cost of goods sold 276,300  250,120 Interest expense 9,700  10,700 Net income before tax 67,250  52,680 Net income after tax 46,050  39,900 Total assets 317,100  288,000 Total liabilities 181,400  167,300 Total equity 135,700  120,700 

A. 2.63.
B. 1.34.
C. 1.75.
D. 0.75.
E. 2.34.


Answer: B

Business

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