The following is financial data for Traber Corp. for the last two years.
| Balance Sheet | 20X1 | 20X2 | | Current assets | $ 200,000 | $ 230,000 | | Property, plant, & equipment (net) | 800,000 | 1,000,000 | | Total assets | $1,000,000 | $1,230,000 | | Current liabilities | 150,000 | 250,000 | | Long-term liabilities | 450,000 | 500,000 | | Stockholders’ equity | $ 400,000 | $480,000 | | | $1,000,000 | $1,230,000 |
| Income Statement | 20X2 | | | Sales | $700,000 | | | Cost of goods sold | (500,000) | | | General and administrative expenses | (80,000) | | | Interest expense | (30,000) | | | Income taxes | (10,000) | | | Net income | $ 80,000 | |
| Other Information | | | | Depreciation expense | $ 15,000 | | | Number of shares of stock outstanding | 100,000 | | | | | |
Calculate the debt to equity ratio for Traber at the end of 20X2.
A. 1.13B. 1.4 C. 1.56 D. 1.04 |
