Financial statement analysis

Answer: a

$13.$ A company has just been taken over by new management which believes that it can raise earnings before taxes $($EBI$)$ from $$600$ to $$1,000,$ merely by cutting overtime pay and thus reducing the cost of goods sold. Prior to the change, the following data applied:

$\backslash$table$[[$Iotal assets:,$$8,000,$Debt ratio:,$45\%$