Teague Industries Presented Below Is Selected Financial Data for Teague

Multiple Choice

Teague Industries Presented below is selected financial data for Teague Industries for the current year:
$\begin{array}{|c|c|c|c|}\hline \text { Current assets: } & & \text { Current liabilities } & \\\hline \text { Cash and cash equivalents } & \$ 3,553 & \text { Accounts payable } & \$ 5,305 \\\hline \text { Short-term investments } & 1,595 & \text { Other current liabilities } & 2,872 \\\hline \text { Receivables, net } & 1,841 & \text { Total current liabilities } & 8,177 \\\hline \text { Merchandise inventories } & 6,185 & \text { Noncurrent liabilities } & 5,196 \\\hline \text { Other current assets } & 1,975 & \text { Shareholders' Equity } & 6,280 \\\hline \text { Total current assets } & 15,149 & \begin{array}{l}\text { Total liabilities and } \\\text { shareholders' } \\\text { equity } \\\end{array} & \$ 19,653 \\\hline \text { Noncurrent assets } & 4,504 & & \\\hline \text { Total assets } & \$ 19,653 & & \\\hline \text { Revenues } & \$ 50,826 & & \\\hline \text { Costs and Expenses } & 45,963 & & \\\hline \text { Operating Income } & 4,863 & & \\\hline \begin{array}{l}\text { Other income/expense } \\\text { (including interest expense } \\\text { of } \$ 50 \text { ) }\end{array} & (26) & & \\\hline \text { Income before income tax } & 4,837 & & \\\hline \text { Income tax expense } & (1,419) & & \\\hline \text { Net income } & \$ 3,418 & & \\\hline\end{array}$
Previous Years' Financial Data
$$\begin{array} { | l | r | } \hline \text { Total Assets } & \$ 17,220 \\\hline \text { Shareholders' Equity } & 3,970 \\\hline\end{array}$$
The financial leverage for Teague Industries is ________. (Round your answer to two decimal places, X.XX.)

A) 2.94
B) 3.13
C) 3.60
D) 3.82