In Its Closing Financial Statements for Its First Year in Business

Multiple Choice

In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of$3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of$1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
-What is the equity multiplier for Runs and Goses?

A) 4.59 times
B) 2.35 times
C) 0.48 times
D) 1.12 times
E) 1.91 times