Use the following information to answer this question. Windswept, Inc

Use the following information to answer this question.

Windswept, Inc. 2017 Income Statement ($ in millions)
Net sales	$	9,600
Cost of goods sold		7,550
Depreciation		380
Earnings before interest and taxes	$	1,670
Interest paid		95
Taxable income	$	1,575
Taxes		551
Net income	$	1,024

 

Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions)
		2016			2017				2016			2017
Cash	$	200		$	230		Accounts payable	$	1,410		$	1,542
Accounts rec.		950			850		Long-term debt		1,040			1,273
Inventory		1,690			1,625		Common stock		3,200			2,950
Total	$	2,840		$	2,705		Retained earnings		510			760
Net fixed assets		3,320			3,820
Total assets	$	6,160		$	6,525		Total liab. & equity	$	6,160		$	6,525

What is the equity multiplier for 2017?
Multiple Choice

• 2.21 times
  
• 2.59 times
  
• 3.25 times
  
• 1.76 times
  
• 1.29 times