The data presented below shows actual figures for selected accounts of McKeon Company for the fiscal year ended May 31, 2010, and selected budget figures for the 2011 fiscal year. McKeon's controller is in the process of reviewing the 2011 budget and calculating some key ratios based on the budget. McKeon Company monitors yield or return ratios using the average financial position of the company. (Round all calculations to three decimal places if necessary.)

                                                            5/31/11     5/31/10

Current assets                                             $210,000   $180,000

Noncurrent assets                                          275,000      255,000

Current liabilities                                             78,000      85,000

Long-term debt                                              75,000       30,000

Common stock ($30 par value)                              300,000      300,000

Retained earnings                                            32,000       20,000

2011 Operations

Sales*                                                  $350,000

Cost of goods sold                                       160,000

Interest expense                                           3,000

Income taxes (40% rate)                                 48,000

Dividends declared and paid in 2011                      60,000

Administrative expense                                   67,000

*All sales are credit sales.  

Composition of Current Assets

                                                     5/31/11    5/31/10

Cash                                                $20,000      $10,000

Accounts receivable                                 100,000       70,000

Inventory                                            70,000       80,000

Other                                                20,000        20,000

                                                    $210,000       $180,000

McKeon Company's debt to total asset ratio for 2011 is

A. 0.237

B. 0.264

C. 0.315

D. 0.352