Use the following information to answer this question.

Bayside, Inc. 2017 Income Statement ($ in thousands)
Net sales	$	6,420
Cost of goods sold		4,140
Depreciation		345
Earnings before interest and taxes	$	1,935
Interest paid		37
Taxable income	$	1,898
Taxes		664
Net income	$	1,234

Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands)
		2016			2017				2016			2017
Cash	$	100		$	205		Accounts payable	$	1,480		$	1,815
Accounts rec.		950			790		Long-term debt		800			590
Inventory		1,640			2,050		Common stock		3,200			3,060
Total	$	2,690		$	3,045		Retained earnings		860			1,110
Net fixed assets		3,650			3,530
Total assets	$	6,340		$	6,575		Total liab. & equity	$	6,340		$	6,575

What is the equity multiplier for 2017?

Multiple Choice

• 1.03 times

• 1.58 times

• 2.06 times

• 2.15 times

• .53 times