Financial Statements for Narita Company Appear Below -Narita Company's Debt-To-Equity Ratio at the End of Year 2

Multiple Choice

Financial statements for Narita Company appear below:

$\begin{array}{|l|r|}\hline & \begin{array}{r}\text { Larned Company } \\\text { Income Statement }\end{array} \\& \text { For the Year Ended December 31, Year } 2\\ & \text { (dollars in thousands) } \\\hline \text { Sales (All on Account) } & \$ 2570 \\\hline \text { Costs of Goods Sold } & \$ 1790 \\\hline \text { Gross Margin } & \$ 780 \\\hline \text { Operating Expenses } & \$ 310 \\\hline \text { Net Operating Income } & \$ 470 \\\hline \text { Interest Expense } & \$ 30 \\\hline \text { Net Income before Taxes } & \$ 440 \\\hline \text { Income Taxes (30\%) } & \$ 132 \\\hline \text { Net Income } & \$ 308 \\\hline\end{array}$
-Narita Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following?

A) 0.17 to 1.
B) 0.25 to 1.
C) 0.42 to 1.
D) 0.58 to 1.