41. The times interest earned ratio measures a company's ability to a. maintain profit after paying interest. b. pay interest and debt on the due date. c. make interest payments out of current earnings. d. pay interest and debt from current assets already on hand. 42. The 2020 and 2021 partial balance sheets for Ottoman Industries are shown below. 2020 2021 Current assets Cash and cash equivalents Accounts receivable, net Inventory $ 16,000 $ 14,000 20,000 24,000 25,000 23,000 5,000 5,000 66,000 66,000 Marketable equity securities Total current assets Plant & equipment, net 40.000 60.000 $126.000 Total assets $106.000 Current liabilities Noncurrent liabilities Total stockholders' equity Total liabilities and stockholders' equity $ 20,000 $ 40,000 60,000 30,000 46,000 36.000 $126.000 $106.000 Calculate Ottoman's working capital for 2021. a $26,000 b. $36,000 c. 1.65 d. 1.53 43. The 2020and 2021 partial balance sheets for Ottoman Industries is shown below. 2020 2021 Current assets Cash and cash equivalents Accounts receivable, net $ 16,000 20,000 25,000 $ 14,000 24,000 23,000 Inventory Marketable equity securities 5.000 5,000 Total current assets Plant & equipment, net Total assets 66,000 60.000 $126,000 66,000 40,000 $106.000 Current liabilities Noncurrent liabilities $ 20,000 60.000 80,000 $ 30,000 40.000 70,000 Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 46,000 $126,000 36,000 $106.000 Calculate the current ratio for 2021. a. 0.47 b. 0.62 c. 1.37 d. 2.20 44. The 2020 and 2021 partial balance sheets for Ottoman Industries is shown below: 2020 2021 Current assets Cash and cash equivalents Accounts receivable, net $ 16,000 20,000 25,000 5,000 Inventory Marketable equity securities $ 14,000 24,000 23,000 5,000 66,000 40,000 $106.000 Total current assets Plant & equipment, net 66,000 60.000 Total assets $126,000 Current liabilities Noncurrent liabilities Total liabilities $ 20,000 60.000 80,000 46.000 $126,000 $ 30,000 40.000 70,000 36.000 $106.000 Total stockholders' equity Total liabilities and stockholders' equity Calculate the 2021 acid-test ratio. a. 1.27 b. 1.51 c. 1.43 d. 2.20 2.922 words 45. The 2020, 2021, and 2022 partial balance sheets for Ottoman Manufacturing Company appear below. 2020 2021 2022 Current assets Cash $ 20,000 28,000 $ 16,000 20,000 $ 14,000 24,000 Accounts receivable, net Inventory 22.000 Total current assets 70,000 30.000 28.000 66,000 66,000 60.000 40.000 $126,000 $106,000 Plant & equipment, net 62.000 $132,000 Total assets Net credit sales for Ottoman were $126,000 for 2020, $120,000 for 2021 and $114,000 for 2022, while cost of goods sold was $84,000 for 2020, $82,400 for 2021 and $72,500 for 2022. What is the average collection period for 2022? a. 68.6 days b. 70.5 days c. 74.9 days d. 76.8 days
