Wittels Corporation Has Provided the Following Data In Year 2, the Company's Net Operating Income Was $42,571

question 29

Multiple Choice

Wittels Corporation has provided the following data: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Total assets }&\$ 1,253,000 & \$ 1,230,000 \\\text { Total liabilities }&\$ 586,000 & \$ 570,000 \\\text { Total stockholders' equity }&\$ 667,000 & \$ 660,000\end{array}$ In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100. The company's equity multiplier is closest to:

• A)1.14
• B)0.53
• C)0.88
• D)1.87

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Definitions:

Commercial Arbitration

A form of arbitration to resolve business disputes outside the courts, where the parties involved appoint an arbitrator(s).

Commercial Invoice

A document used in international trade that details the price, type, and quantity of goods shipped, serving as a demand for payment.

Contract of Affreightment

An agreement between a ship-owner and a charterer to transport goods in a specified quantity over a set period of time without designating a specific vessel.