Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown.

Genatron Manufacturing Corporation Balance Sheet
		2020		2019
ASSETS
Cash		$41,975		$50,552
Accts. receivable		260,722		200,698
Inventory		501,775		450,820
Total current assets		804,472		702,070
Fixed assets, net		400,000		300,000
Total assets		$1,204,472		$1,002,070
LIABILITIES AND EQUITY
Accts. payable		$170,425		$132,539
Bank loan		91,206		91,206
Accruals		70,000		50,000
Total current liabilities		331,631		273,745
Long-term debt, 12%		382,915		292,485
Common stock, $10 par		300,000		300,000
Capital surplus		41,398		41,398
Retained earnings		148,528		94,442
Total liabilities & equity		$1,204,472		$1,002,070

Genatron Manufacturing Corporation Income Statement
		2020		2019
Net sales		$1,577,524		$1,377,524
Cost of goods sold		946,514		826,514
Gross profit		631,010		551,010
Expenses:
General and administrative		150,000		150,000
Marketing		150,000		130,000
Depreciation		51,283		41,940
Interest		55,018		44,561
Earnings before taxes		224,709		184,509
Income taxes		75,445		60,191
Net income		$149,264		$124,318

(a)

Calculate Genatrons dollar amount of net working capital in each year.

		2020		2019
Net working capital		$		$

eTextbook and Media

Save for Later

Attempts: 0 of 2 used

Submit Answer

(b)

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

eTextbook and Media

Save for Later

Attempts: 0 of 2 used

Submit Answer

(c)

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

eTextbook and Media