Old Man Company Balance Sheet 2020 2019 Change Current assets: Cash Accounts receivable Inventory Marketable securities Prepaid expenses Long-term assets Plant & equipment (net) Land Patent $88,000 127,000 46,000 64,000 40,000 $91,500 91,000 60,000 38,000 36,000 $(3,500) 36,000 (14,000) 26,000 4,000 316,000 12.000 43.000 175,000 91,000 63.000 141,000 (19,000) 0 Total Assets 736,000 645,500 31,000 23,200 2,400 22,500 31,250 27,000 64,000 12,000 14,500 10,000 4,000 (40,800) (9,600) 8,000 21.250 Current liabilities: Accounts payable Interest payable Other accruals Tax payable Note payable Long-term liabilities Mortgage payable Bond payable Stockholder's equity Common stock Paid-in-capital Retained earnings 51,000 107.000 61,000 150,000 (10,000) (43,000) 350,000 35,000 82,650 250,000 10,000 47,000 100,000 25,000 35,650 Total Liabilities and Equity 736,000 645,500 Income Statement For the Year Ended December 31, 2020 Revenues: Sales (All on credit) $1,040,000 Expenses: Cost of goods sold 530,050 Depreciation expense 90,000 *Other operating expenses 182,000 Interest expense 75,000 Tax expense 38.000 Total expense 915.050 Net Income 124,950 *(Includes $15,000 of amortization expense for patent and $20,000 of a lease expense, which is a fixed charge) 6. Based on the statements used for Problem 2" (Old Man Company), the "operating profit margin for 2020 is: a. 12.01% b. 49.03% c. 15.67% d. 22.88% 7. Based on the statements used for Problem 2" (Old Man Company), the Interest coverage ratio" for 2020 is: a. 3.17 times b. 6.26 times c. 2.91 times d. None of the above 9. Based on the statements used for Problem 2" (Old Man Company), the inventory turnover" for 2020 is: a. 22.61 times b. 11.52 times c. 10.00 times d. 19.62 times