Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown....
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Finance
Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown.
Genatron Manufacturing CorporationBalance Sheet
2020
2019
ASSETS
Cash
$41,435
$51,163
Accts. receivable
260,271
200,259
Inventory
504,193
450,218
Total current assets
805,899
701,640
Fixed assets, net
400,000
300,000
Total assets
$1,205,899
$1,001,640
LIABILITIES AND EQUITY
Accts. payable
$170,354
$132,701
Bank loan
90,314
90,314
Accruals
70,000
50,000
Total current liabilities
330,668
273,015
Long-term debt, 12%
386,029
292,478
Common stock, $10 par
300,000
300,000
Capital surplus
43,113
43,113
Retained earnings
146,089
93,034
Total liabilities & equity
$1,205,899
$1,001,640
Genatron Manufacturing Corporation Income Statement
2020
2019
Net sales
$1,535,390
$1,335,390
Cost of goods sold
921,234
801,234
Gross profit
614,156
534,156
Expenses:
General and administrative
150,000
150,000
Marketing
150,000
130,000
Depreciation
51,014
42,794
Interest
56,884
44,115
Earnings before taxes
206,258
167,247
Income taxes
75,189
60,901
Net income
$131,069
$106,346
Calculate Genatrons dollar amount of net working capital in each year.
2020
2019
Net working capital
$
$
Calculate the current ratio and the acid-test ratio in each year. (Round answers to 2 decimal places, e.g. 52.75.)
2020
2019
Current ratio
Acid-test ratio
Calculate the average collection period and the inventory-turnover ratio in each year. (Use 365 days for calculation. Round Average collection period to 1 decimal place, e.g. 527.5 and other answers to 2 decimal places, e.g. 52.75.)
2020
2019
Average collection period
days
days
Inventory turnover ratio
Answer & Explanation
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