Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011. GENATRON MANUFACTURING CORPORATION 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 Net plant and equipment 200,000 150,000 150,000 Land 50,000 50,000 50,000 Total fixed assets 250,000 200,000 200,000 Total assets $500,000 $400,000 $352,000 LIABILITIES AND EQUITY Accounts payable $ 78,000 $ 65,000 $ 58,000 Notes payable 34,000 10,000 10,000 Accrued liabilities 30,000 25,000 25,000 Total current liabilities 142,000 100,000 93,000 Long-term debt 140,000 100,000 71,000 Total liabilities $282,000 $200,000 $164,000 Common stock ($1 par, 50,000 shares) $ 50,000 $ 50,000 $ 50,000 Paid-in capital 100,000 100,000 100,000 Retained earnings 68,000 50,000 38,000 Total stockholders equity 218,000 200,000 188,000 Total liabilities and equity $500,000 $400,000 $352,000 YEARS ENDED DECEMBER 31 2012 2011 2010 Net revenues or sales $700,000 $600,000 $540,000 Cost of goods sold 450,000 375,000 338,000 Gross profit 250,000 225,000 202,000 Operating expenses: General and administrative 95,000 95,000 95,000 Selling and marketing 56,000 50,000 45,000 Depreciation 25,000 20,000 15,000 Operating income 74,000 60,000 47,000 Interest 14,000 10,000 7,000 Income before taxes 60,000 50,000 40,000 Income taxes (40%) 24,000 20,000 16,000 Net income $ 36,000 $ 30,000 $ 24,000 Number of shares outstanding 50,000 50,000 50,000 Earnings per share $0.72 $0.60 $0.48