Exhibit 13-1 Xavier Company Reported the Following Income Statement and Balance Sheet

Multiple Choice

Exhibit 13-1
Xavier Company reported the following income statement and balance sheet amounts on December 31,2013.
Inventory and prepaid expenses account for $50,000 of the 2013 current assets.
Average inventory for 2013 is $36,000.
Average net accounts receivable for 2013 is $62,000.
Average one-day sales are $5,900.
There are 12,000 shares of common stock outstanding at the end of 2013.
The market price per share of common stock is $27 at the end of 2013.
The EPS for 2013 is equal to $1.50 per share.
-Refer to Exhibit 13-1.What is the debt to equity ratio for 2013 (rounded to two decimal places) ?

A) 0.11
B) 0.30
C) 0.42
D) 0.31
E) None of the answer choices is correct.