Use the following information to answer this question.

Windswept, Inc.

2017 Income Statement

($ in millions)Net sales$10,050Cost of goods sold7,700Depreciation395Earnings before interest and taxes$1,955Interest paid90Taxable income$1,865Taxes653Net income$1,212

Windswept, Inc.

2016 and 2017 Balance Sheets

($ in millions)2016201720162017Cash$230$260Accounts payable$1,590$1,617Accounts rec.1,010910Long-term debt1,0201,303Inventory1,8501,670Common stock3,2602,980Total$3,090$2,840Retained earnings600850Net fixed assets3,3803,910Total assets$6,470$6,750Total liab. & equity$6,470$6,750

What is the equity multiplier for 2017?

Multiple Choice

• 2.27 times
• 3.37 times
• 2.62 times
• 1.31 times
• 1.76 times