Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales	$	9,750
Cost of goods sold		7,600
Depreciation		385
Earnings before interest and taxes	$	1,765
Interest paid		97
Taxable income	$	1,668
Taxes		584
Net income	$	1,084

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
		2016			2017				2016			2017
Cash	$	210		$	240		Accounts payable	$	1,500		$	1,587
Accounts rec.		970			870		Long-term debt		1,000			1,283
Inventory		1,720			1,640		Common stock		3,220			2,960
Total	$	2,900		$	2,750		Retained earnings		520			770
Net fixed assets		3,340			3,850
Total assets	$	6,240		$	6,600		Total liab. & equity	$	6,240		$	6,600

What is the equity multiplier for 2017?

Multiple Choice

• 3.29 times

• 1.30 times

• 2.23 times

• 1.77 times

• 2.61 times