2011 and 2012 Balance Sheets 2011 2012 2011 2012 Cash $2,060 $1,003 Accounts payable $7.250 $8.384 Accounts rec. 4.218 Long-term debt 9,800 11.500 Inventory 18,776 21,908 Common stock 15.000 17.500 Total Retained earning 6,357 3.825 $24.247 14.160 $27,129 14.080 Net fixed assets Total assets $38.407 $41.209 Total liab & equity $38.407 541.2012 5:41,209 Precision Tool 2012 Income Statement Net sales $36,408 28,225 Less: Cost of goods sold Less: Depreciation 1.760 6,423 Earnings before interest and taxes 510 Less: Interest paid $5,913 Taxable income 2.070 Less: Taxes $3.843 Net Income $36,408 Less: Cost of goods sold 28,225 Less: Depreciation 1.760 Earnings before interest and taxes 6,423 Less: Interest paid 510 Taxable income $5,913 Less: Taxes 2.079 Net income $3,843 What is the equity multiplier for 2012? 1.67 1.72 1.88 1.93 2.03