Question 11 Financial statements for the Genatron Manufacturing Corporation for the years 2017 and 2016 are shown. Genatron Manufacturing Corporation Balance Sheet 2017 2016 ASSETS Cash $41,715 $50,401 Accts. receivable 261,896 201,084 Inventory 502,925 450,392 Total current assets 806,536 701,877 Fixed assets, net 400,000 300,000 Total assets $1,206,536 $1,001,877 LIABILITIES AND EQUITY Accts. payable $172,339 $134,572 Bank loan 91,614 91,614 Accruals 70,000 50,000 Total current liabilities 333,953 276,186 Long-term debt, 12% 395,208 303,293 Common stock, $10 par 300,000 300,000 Capital surplus 49,715 49,715 Retained earnings 127,660 72,683 Total liabilities & equity $1,206,536 $1,001,877 Genatron Manufacturing Corporation Income Statement 2017 2016 Net sales $1,654,790 $1,454,790 Cost of goods sold 992,874 872,874 Gross profit 661,916 581,916 Expenses: General and administrative 150,000 150,000 Marketing 150,000 130,000 Depreciation 52,941 42,423 Interest 54,920 44,804 Earnings before taxes 254,055 214,689 Income taxes 74,087 60,317 Net income $179,968 $154,372 v (c) Your answer is partially correct. Try again. 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.) 2017 2016 Average collection period 57.8 days 50.5 days x X Inventory turnover ratio 3.29 3.23