The 2020 and 2021 balance sheets for Ottoman Manufacturing Company appear below along with selected financial information.Ottoman declared no dividends during either year, and had 1,000 shares of stock outstanding throughout each year. Required:
a.Calculate the acid-test ratio for 2020.
b.Calculate the working capital for 2021.
c.Calculate earnings per share for 2021.

Question

The 2020 and 2021 balance sheets for Ottoman Manufacturing Company appear below along with selected financial information.Ottoman declared no dividends during either year, and had 1,000 shares of stock outstanding throughout each year.  Required: 
a.Calculate the acid-test ratio for 2020.
b.Calculate the working capital for 2021.
c.Calculate earnings per share for 2021.

Quizplus · Accepted Answer

The Answer of The 2020 and 2021 balance sheets for Ottoman Manufacturing Company appear below along with selected financial information.Ottoman declared no dividends during either year, and had 1,000 shares of stock outstanding throughout each year.  Required: 
a.Calculate the acid-test ratio for 2020.
b.Calculate the working capital for 2021.
c.Calculate earnings per share for 2021.

The 2020 and 2021 Balance Sheets for Ottoman Manufacturing Company