Financial statements for Narita Company appear below:
$Financial statements for Narita Company appear below: \begin{array}{|l|r|}\hline & \begin{array}{r} \text { Larned Company } \\ \text { Income Statement } \end{array} \\ & \text { For the Year Ended December 31, Year } 2\\ & \text { (dollars in thousands) } \\ \hline \text { Sales (All on Account) } & \$ 2570 \\ \hline \text { Costs of Goods Sold } & \$ 1790 \\ \hline \text { Gross Margin } & \$ 780 \\ \hline \text { Operating Expenses } & \$ 310 \\\hline \text { Net Operating Income } & \$ 470 \\ \hline \text { Interest Expense } & \$ 30 \\ \hline \text { Net Income before Taxes } & \$ 440 \\ \hline \text { Income Taxes (30\%) } & \$ 132 \\ \hline \text { Net Income } & \$ 308 \\ \hline \end{array} -Narita Company's debt-to-equity ratio at the end of Year 2 was closest to which of the following? A) 0.17 to 1. B) 0.25 to 1. C) 0.42 to 1. D) 0.58 to 1.$

\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.

Selected Financial Data for Irvington Company Appear Below

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