Covenants represent:

Select one:

A$.$

Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment

B$.$

The maximum that a creditor will allow a customer to owe at any point in time

C$.$

Promises the company makes to the creditor

D$.$

The property that a company pledges to guarantee repaymenterm borrowings Current portion of long.term debt Accounts payable Accrued liabilities Income taxes payable Total Current Llabilities Longterm debt Doferred income taxes Total Liabilities Common stock $ $548,001$ $ $289,834166,106187,064245,468274,645403,268371,57852,60124,23483,05385,0291,498,4971,232,3841,384,217625,421568,003425,000$ $ $3,450,717$ $ $2,282,8055306,3765170,419155,000168,000241,405271,944259,975158,69492,848169,9651,055,604938,962500,000300,000204,266249,2841,759\mathrm{.}8701,488,246$ $ $425,250$ $ $125,000/$r$/$n Selected Income Statement Data for the year ending December $31,$ Year $7$ Net sales. Cost of goods sold Selling expenses Operating income Interest expense Farnings before income taxes income tax expense Net income $[54,885,340)$; $(2,960,267)$; $(884,685)$; $1,040,388$; $55,240)$; $985,148)$; $(401,225)$; $5583,923$; $]/$r$/$n Wilmington Corporation's financial leverage in Year $7$ was: Select one: a$.2\mathrm{.}31$ b$.0\mathrm{.}43$ c$.0\mathrm{.}49$ d$.2\mathrm{.}04/$r$/$n Selected financial data for Wilmington Corporation is presented below. $/$r$/$n Dotarteurrentrsses $1,452,7421,181,842$ Property, plant and equipment $1,384,217625,421$ Long$-$term investment $568,003425,000$ Total Assets $ $3,384,962$ $ $2,232,263$ Current Liabilities Short$-$term borrowings $ $306,376$ $$ $170,419$ Current portion of long$-$term debt $155,000168,000$ Accounts payable $228,700257,631$ Accrued liabilities $246,292150,285$ Income taxes payable $87,962161,020$ Total Current Liabilities $1,024,330907,355$ Long$-$term debt $500,000300,000$ Deferred income taxes $193,515236,164$ Total Liabilities $1,717,8451,443,519$ Common stock $ $425,250$ $ $125,000$ Additional paid in capital $356,450344,335$ Retained earnings $885,417319,409$ Total Stockholders' Equity $1,667,117788,744$ Total Liabilities and Stockholders' Equity $ $3,384,962$ $ $2,232,263$ Selected Income Statement Data for the year ending December $31,$ Year $7$ Net sales $ $4,885,340$ Cost of goods sold $(2,978,182)$ Selling expenses $(884,685)$ Operating income $1,022,473$ Interest expense $(55,240)$ Farnings before income taxes $967,233$ Income tax exnensp $(401,225)/$r$/$n Wilmington Corporation's total debt to equity ratio in Year $7$ was: Select one: a$.0\mathrm{.}48$ b$.1\mathrm{.}03$ c$.0\mathrm{.}28$ d$.0\mathrm{.}58$