Use the following information to answer this question.

Bayside, Inc.

2017 Income Statement

($ in thousands)Net sales$6,920Cost of goods sold4,390Depreciation370Earnings before interest and taxes$2,160Interest paid36Taxable income$2,124Taxes743Net income$1,381

Bayside, Inc.

2016 and 2017 Balance Sheets

($ in thousands)2016201720162017Cash$125$230Accounts payable$1,615$1,990Accounts rec.1,050890Long-term debt840640Inventory1,7402,100Common stock3,3003,110Total$2,915$3,220Retained earnings9101,160Net fixed assets3,7503,680Total assets$6,665$6,900Total liab. & equity$6,665$6,900

What is the equity multiplier for 2017?

Multiple Choice

• 1.01times
• 1.62times
• .54times
• 2.22 times
• 2.12times