Lasch Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Total assets$1,333,000 $1,320,000 Accounts payable$158,000 $160,000 Accrued liabilities$43,000 $40,000 Notes payable, short term$47,000 $50,000 Bonds payable$250,000 $250,000 Total liabilities$498,000 $500,000 Total stockholders' equity$835,000 $820,000 Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,250,000 Cost of goods sold 840,000 Gross margin 410,000 Operating expenses 366,286 Net operating income 43,714 Interest expense 18,000 Net income before taxes 25,714 Income taxes (30%) 7,714 Net income$18,000 The company's equity multiplier at the end of Year 2 is closest to:

A. 0.60
B. 1.60
C. 0.63
D. 1.68


Answer: B

Business

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