Arcinet Limited Reported the Following Items on Their Balance Sheet

Multiple Choice

Arcinet Limited reported the following items on their Balance Sheet: $\begin{array}{|r|r|}\hline \text { Unearned Revenue } & \$ 85,000 \\\hline \text { Prepaid Rent } & 56,200 \\\hline \text { Mortgage liabilities } & 135,000 \\\hline \text { Long-term note payable } & 150,000 \\\hline \text { Bonds payable } & 195,000 \\\hline \text { Other Current Liabilities } & 23,000 \\\hline \text { Share capital } & 125,000 \\\hline \text { Retained earnings } & 157,500 \\\hline\end{array}$ The debt to equity ratio for Arcinet (rounded to two decimal places) is

A) 2.08
B) 1.78
C) 1.22
D) 1.98
E) 1.96