Ottoman Manufacturing Company reported net sales (all credit) of $120,000 and $140,000 for 2020 and 2021, respectively and net income of $24,000 and $32,000 for 2020 and 2021, respectively.Ottoman's 2020 and 2021 balance sheets appear below: Required:
a.Calculate the working capital for 2021.
b.Calculate the accounts receivable turnover for 2021.
c.Calculate the debt ratio for 2021.

Question

Ottoman Manufacturing Company reported net sales (all credit) of $120,000 and $140,000 for 2020 and 2021, respectively and net income of $24,000 and $32,000 for 2020 and 2021, respectively.Ottoman's 2020 and 2021 balance sheets appear below:  Required: 
a.Calculate the working capital for 2021.
b.Calculate the accounts receivable turnover for 2021.
c.Calculate the debt ratio for 2021.

Quizplus · Accepted Answer

The Answer of Ottoman Manufacturing Company reported net sales (all credit) of $120,000 and $140,000 for 2020 and 2021, respectively and net income of $24,000 and $32,000 for 2020 and 2021, respectively.Ottoman's 2020 and 2021 balance sheets appear below:  Required: 
a.Calculate the working capital for 2021.
b.Calculate the accounts receivable turnover for 2021.
c.Calculate the debt ratio for 2021.

Ottoman Manufacturing Company Reported Net Sales (All Credit) of $120,000