MC algo $3-13$ Equity Multiplier

Use the following information to answer this question.

Windswept, Incorporated

$2017$ Income Statement

$($$ in millions$)$

Net sales $ $9,150$

Cost of goods sold $7,400$

Depreciation $365$

Earnings before interest and taxes $ $1,385$

Interest paid $89$

Taxable income $ $1,296$

Taxes $454$

Net income $ $842$

Windswept, Incorporated

$2016$ and $2017$ Balance Sheets

$($$ in millions$)$

$2016201720162017$

Cash $ $170$ $ $200$ Accounts payable $ $1,190$ $ $1,377$

Accounts receivable $860760$ Long$-$term debt $1,0101,243$

Inventory $1,6001,580$ Common stock $3,2102,920$

Total $ $2,630$ $ $2,540$ Retained earnings $480730$

Net fixed assets $3,2603,730$

Total assets $ $5,890$ $ $6,270$ Total liabilities & equity $ $5,890$ $ $6,270$

What is the equity multiplier for $2017?$

Multiple Choice

$2\mathrm{.}51$ times

$1\mathrm{.}28$ times

$3\mathrm{.}13$ times

$1\mathrm{.}72$ times

$2\mathrm{.}15$ times