Urban, Inc provides the following data

Urban, Inc
Comparative Balance Sheet
Year Ended Dec. 31, 2017

Assets
Current Assets:
Cash and Cash Equivalents $29,000
Account Receivable, Net 31,000
Merchandise Inventory 53,000
Total Current Assets $113,000
Property, Plant, and Equipment, Net 120,000
Total Assets $233,000
Liabilities
Current Liabilities:
Accounts Payable $4,300
Notes Payable 2,900
Total Current Liabilities $7,200
Long-term Liabilities 84,000
Total Liabilities $91,200
Stockholders' Equity
Common Stock $37,000
Retained Earnings 104,800
Total Stockholders' Equity $141,800
Total Liabilities and Stockholders' Equity $233,000

Calculate the debt to equity ratio. (Round your answer to two decimal places.)
A) 0.39
B) 0.05
C) 1.24
D) 0.64

D .D) Debt to equity ratio = Total liabilities / Total equity = $84,000 / $141,800 = 0.64

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