Jensen's Shipping Has Total Assets of $694,800 at Year's End

Multiple Choice

Jensen's Shipping has total assets of $694,800 at year's end. The beginning owners' equity was $362,400. During the year, the company had sales of $711,000, a profit margin of 5.2 percent, a tax rate of 21 percent, and paid $12,500 in dividends. What is the equity multiplier at year-end?

A) 1.67
B) 1.72
C) 1.93
D) 1.80
E) 1.86