Question 14 Financial statements for the Genatron Manufacturing Corporation for the years 2017 and 2016 are shown. Genatron Manufacturing Corporation Balance Sheet 2017 2016 ASSETS Cash $40,015 $50,196 Accts. receivable 260,594 201,724 Inventory 504,211 450,461 Total current assets 804,820 702,381 Fixed assets, net 400,000 300,000 Total assets $1,204,820 $1,002,381 LIABILITIES AND EQUITY Accts. payable $171,049 $133,419 Bank loan 90,926 90,926 Accruals 70,000 50,000 Total current liabilities 331,975 274,345 Long-term debt, 12% 387,371 302,574 Common stock, $10 par 300,000 300,000 Capital surplus 49,098 49,098 Retained earnings 136,376 76,364 Total liabilities & equity $1,204,820 $1,002,381 Genatron Manufacturing Corporation Income Statement 2017 2016 Net sales $1,696,941 $1,496,941 Cost of goods sold 1,018,165 898,165 Gross profit 678,776 598,776 Expenses: General and administrative 150,000 150,000 Marketing 150,000 130,000 Depreciation 52,920 41,069 Interest 54,141 44,747 Earnings before taxes 271,715 232,960 Income taxes 74,511 61,369 Net income $197,204 $171,591 (a) Your answer is correct. Calculate Genatron's dollar amount of net working capital in each year. 2017 2016 Net working capital 472,845 428,036 SHOW SOLUTION LINK TO TEXT LINK TO TEXT (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 2.42 2.56 Acid-test ratio 0.90 .92 (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.) 2017 2016 Average collection period days days Inventory turnover ratio