31. The following financial statement items are shown for J&T Manufacturing. Net sales $840,00 Cost of goods sold Insurance expense 360,000 28,000 120,000 Total operating expenses Net income 56,000 Calculate the common-size percentage for gross margin. a. 0.8% b. 11.6% c. 42.8% d. 57.1% 32. A firm's ability to pay its obligations as they come due and to meet any unforeseen needs for cash is called a. current ratio. b. liquidity. c. working capital. d. accounts receivable turnover. 33. Which of the following is not a measure of liquidity? a. Working capital b. Average collection period c. Acid-test d. Price-earnings ratio 34. Which of the following will probably not be a result if a company's liquidity is poor? a. Workers will quit if they are not paid on time. b. Debt and/or equity will exceed the company's maximum allowed amount. c. Banks may not loan the company funds. d. Customers will seek other sources of goods when the company's product is not available. 35. The difference between a firm's current assets and its current liabilities is a. cash flow. b. working capital. c. current ratio. d. return on Assets