Please show workings Income Statement (Millions of $)2018Net sales$84,000Operating costs except depreciation78,120Depreciation1,680Earnings before interest and taxes (EBIT)$4,200Less interest900Earnings before taxes (EBT)$3,300Taxes1,320Net income$1,980Other data:Shares outstanding (millions)500.00Common dividends (millions of $)$693.00Int rate on notes payable & L-T bonds6%Federal plus state income tax rate40%Year-end stock price$47.52Refer to Exhibit 4.1. What is the firm's total debt to total capital ratio? Do not round your intermediate calculations.O a. 45.45%O b. 39.09%O c. 44.09%O d. 38.18%O e. 39.55% Exhibit 4.1The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt mustbe retired during the next 5 years, and the notes payable will be rolled over.Balance Sheet (Millions of $)Assets2018Cash and securities$3,000Accounts receivable15,000Inventories18,000Total current assets$36,000Net plant and equipment$24,000Total assets$60,000Liabilities and EquityAccounts payable$18,630Accruals8,370Notes payable6,000Total current liabilities$33,000Long-term bonds$9,000Total liabilities$42,000Common stock$5,040Retained earnings12,960Total common equity$18,000Total liabilities and equity$60,000Income Statement (Millions of $)2018

Introduction: Total debt to total capital ratio formula is,Identify the correct option: Total debt = 6000+9000=15000 (million) Equity Capital = 18000 (million) From the above calculation, it is clear that option "a" is the correct answer.Answer: Option a - 45.45%