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 $40,346 $50,962 Accts. receivable 260,943 200,298 Inventory 500,974 451,929 Total current assets 802,263 703,189 Fixed assets, net 400,000 300,000 Total assets $1,202,263 $1,003,189 LIABILITIES AND EQUITY Accts. payable $172,684 $133,720 Bank loan 90,267 90,267 Accruals 70,000 50,000 Total current liabilities 332,951 273,987 Long-term debt, 12% 394,950 308,284 Common stock, $10 par 300,000 300,000 Capital surplus 43,496 43,496 Retained earnings 130,866 77,422 Total liabilities & equity $1,202,263 $1,003,189 Genatron Manufacturing Corporation Income Statement 2017 2016 Net sales $1,685,627 $1,485,627 Cost of goods sold 1,011,376 891,376 Gross profit 674,251 594,251 Expenses: General and administrative 150,000 150,000 Marketing 150,000 130,000 Depreciation 51,824 41,755 Interest 56,276 44,878 Earnings before taxes 266,151 227,618 Income taxes 74,446 60,871 Net income $191,705 $166,747 (a) Your answer is correct. Calculate Genatron's dollar amount of net working capital in each year. 2017 2016 Net working capital 469312 429202 SHOW SOLUTION LINK TO TEXT Attempts: 1 of 2 used (b) Your answer is correct. Calculate the current ratio and the acid-test ratio in each year. (Round answers to 2 decimal places, e.g. 52.75.) 2017 2016 Current ratio 2.41 2.57 Acid-test ratio 0.90 0.92 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 X Average collection period 57 days 49 days Inventory turnover ratio 2.02 3.29