Answer:
1.59 times
Explanation:
Average total assets = Beginning total assets + Ending Total assets / 2
Average total assets = 6,470 + 6,705 / 2
Average total assets = $6,587.5
Beginning Total equity = Common stock + Retained earnings
Beginning Total equity = $3,240 + $3,080
Beginning Total equity = $6,320
Ending Total equity = Common stock + Retained earnings
Ending Total equity= $880 + $1,130
Ending Total equity = $2,010
Average total equity = Beginning Total equity + Ending Total equity / 2
Average total equity = $6,320 + $2,010 / 2
Average total equity = $4,165
Equity multiplier for 2017 = Average total assets / Average total equity
Equity multiplier for 2017 = $6,587.5 / $4,165
Equity multiplier for 2017 = 1.581632653061224
Equity multiplier for 2017 = 1.5816 times
