Question 9 Given the following Year 12 balance sheet data for a footwear company: Balance Sheet Data Cash on Hand $ 10,000 Total Current Assets 100,000 Total Fixed Assets 250,000 Total Assets $350,000 Accounts Payable $ 20,000 Overdraft Loan Payable 0 1-Year Bank Loan Payable 5,000 Current Portion of Long-Term Bank Loans 17,000 Total Current Liabilities 42,000 Long-Term Bank Loans Outstanding 98,000 Total Liabilities 140,000 Shareholder Equity: Year 11 Balance Year 12 Change Common Stock 20,000 0 20,000 Additional Capital 110,000 0 110,000 Retained Earnings 60,000 20,000 80,000 Total Shareholder Equity 190,000 +20,000 210,000 Total Liabilities and Shareholder Equity $350,000

Based on the above figures and the definition of the debt-assets ratio presented in the Help section for p. 5 of the Footwear Industry Report, the companys debt-assets ratio (rounded to 2 decimal places) is

A. 0.57.

B. 0.38.

C. 0.40.

D. 0.43.

E. 0.32.