Essay
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.
Correct Answer:
Verified
a.$62,000 ̶ $30,000 = $32,000
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