At the Beginning of the Year,a Firm Had $120,000 in Total

Multiple Choice

At the beginning of the year,a firm had $120,000 in total assets and a debt-to-assets ratio of 0.5 or 50%.During the year,the firm's assets increased by $40,000,and its liabilities increased by $36,000.What is the debt-to-assets ratio at the end of the year?

A) 0.6 or 60%
B) 0.4 or 40%
C) 0.9 or 90%
D) 1.7 or 170%