BALANCE SHEET	2012	2011
ASSETS
Cash	$40,000	$50,000
Accts. Receivable	260,000	200,000
Inventory	500,000	450,000
Total current assets	800,000	700,000
Fixed assets, net	400,000	300,000
Total assets	$1,200,000	$1,000,000
LIABILITIES AND EQUITY
Accts. Payable	$170,000	$130,000
Bank loan	90,000	90,000
Accruals	70,000	50,000
Total current liabilities	330,000	270,000
Long-term debt, 12%	400,000	300,000
Common stock, $10 par	300,000	300,000
Capital surplus	50,000	50,000
Retained earnings	120,000	80,000
Total liabilities & equity	$1,200,000	$1,000,000

Income statement	2012	2011
Net sales	$1,500,000	$1,300,000
Cost of goods sold	900,000	780,000
Gross profit	600,000	$20,000
Expenses: gen/admin	150,000	150,000
Marketing	150,000	130,000
Depreciation	53,000	40,000
Interest	57,000	45,000
Earnings before taxes	190,000	155,000
Incomes taxes	76,000	62,000
Net income	$114,000	$93,000

This problem uses the financial statements for the Genatron Manufacturing Corporation for the years of 2012 and 2011 from problem 6

a. Calculate Genatron