Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown. Genatron Manufacturing Corporation Balance Sheet 2020 2019 ASSETS Cash $41,681

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Financial statements for the Genatron Manufacturing Corporation for the years 2020 and 2019 are shown. Genatron Manufacturing Corporation Balance Sheet 2020 2019 ASSETS Cash $41,681 $51,864 Accts receivable 261,131 201.751 Inventory 501,864 451,435 Total current assets 804,676 705.050 Fixed assets, net 400.000 300,000 Total assets $1,204,676 $1,005,050 LIABILITIES AND EQUITY Accts payable $170,633 $133,655 Bank loan 90,478 90.478 Accruals 70,000 50,000 Total current liabilities 331,111 274,133 Long-term debt, 12% 393,569 299,592 Common stock, $10 par 300,000 300,000 Capital surplus 46,801 46,801 Retained earnings 133,195 84,524 Total liabilities & equity $1,204,676 $1,005,050 Genatron Manufacturing Corporation Income Statement 2020 2019 Net Sales $1,621,665 $1,421,665 Cost of goods sold 972.999 852.999 Gross profit 648,666 568,666 Expenses: General and administrative 150,000 150,000 150,000 130,000 Marketing Depreciation 52,859 41,566 Interest 54,873 44,453 240,934 202,647 Earnings before taxes Income taxes 72,511 61,808 Net income $168,423 $140,839 Calculate Genatron's 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance And The Mechanics Of Insurance And Reimbursement

Authors: Michael K. Harrington

2nd Edition

1284169030, 978-1284169034

More Books

Students also viewed these Finance questions

Question

How does that affect your approach to complaint handling?

Answered: 1 week ago