Chestnut, Inc. reported the following balances on its balance sheet at December 31, Year 1: Total assets $268,000? Total liabilities $88,000? Common Stock$84,000? Retained Earnings 96,000? Total equity 180,000? Total liabilities and equity $268,000? On January 1, Year 2, Chestnut purchased equipment for $59,000 on account. What is the company's debt-to-assets ratio immediately after the purchase of the equipment?
A. 0.33
B. 0.45
C. 0.35
D. 0.44
Answer: B
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