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Author Question: The income statement for Otto Construction Company appears below:Net sales (all credit ... (Read 29 times)

ncasson210

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on: Feb 5, 2023

Question 1

The 2021 and 2022 partial balance sheets for Ottoman Manufacturing Company appear below:

​​20212022
Current liabilities$  20,000$  30,000
Noncurrent liabilities    60,000    40,000
Total liabilities80,00070,000
Stockholders' equity​​
  Common stock2,0002,000
  Additional paid-In capital4,0004,000
  Retained earnings   40,000   26,000
Total stockholders' equity   46,000   32,000
Total liabilities and stockholders' equity$126,000$102,000

What is the debt-to-equity ratio for 2022?
◦ 2.19
◦ 1.80
◦ 0.46
◦ 1.25

Question 2

The income statement for Otto Construction Company appears below:

Net sales (all credit sales)$180,000
Cost of goods sold 100,000
Gross margin80,000
Operating expenses30,000
Interest expense   12,000
Income before taxes38,000
Income tax     9,500
Net income$  28,500

Average total assets total $240,000. Otto's income tax rate is 25%. What is the times interest earned ratio?
◦ 3.16
◦ 2.38
◦ 4.17
◦ 3.13
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by ncasson210 on Feb 5, 2023

Sha

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ncasson210

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

aruss1303

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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