Financial statements for Narstad Corporation appear below:Narstad CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets: Cash and marketable securities$100 $100 Accounts receivable, net 220 190 Inventory 190 180 Prepaid expenses 10 20 Total current assets 520 490 Plant & equipment, net 1,940 1,940 Total assets$2,460 $2,430 Current liabilities: Accounts payable$150 $150 Accrued liabilities 90 70 Notes payable, short term 100 150 Total current liabilities 340 370 Bonds payable 310 300 Total liabilities 650 670 Stockholders' equity: Common stock, $2 par 180 180 Additional paid-in capital 330 330 Retained

Question

earnings 1,300  1,250 Total stockholders' equity 1,810  1,760 Total liabilities & stockholders' equity$2,460 $2,430 Narstad CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,770 Cost of goods sold 1,230 Gross margin 540 Selling and administrative expense 210 Net operating income 330 Interest expense 30 Net income before taxes 300 Income taxes (30%) 90 Net income$210 Narstad Corporation's debt-to-equity ratio at the end of Year 2 was closest to:

A. 0.36
B. 0.17
C. 0.50
D. 0.19

Answer 1

Answer: A