1. The current sheet of Apex reports total assets of $20million total liabilitie

1. The current sheet of Apex reports total assets of $20million total liabilities of $2 million and owners equity of $18million. Apex is considering several; financing possibilities inorder to expand operations. Each question based on this data isindependent of any others. What will be the effect on Apexs debtratio if Apexs owner invests an additional $2 million to financeits expansion?a. Additional investment by owner will have no effect on the debtratiob. The debt ratio will increase from 20 before to 22 after theadditional investmentc. The debt ratio will decrease from 2/9 before to 2/11 after theadditional investmentd. The debt ratio will decrease from .1 (2/20) to .0909 (2/22)after the additional investment