This problem uses the financial statements for the Genatron Manufacturing Corporation for the years 2012 and 2011 from Problem 6. a. Calculate Genatrons dollar amount of net working capital in each year. b.Calculate the current ration and the acid test ratio in each year. c. Calculate the average collection period and the inventory turnover ratio in each year. d. What changes in the management of genatrons current assets seem to have occurred between the two years? financials from problem 6 Balance Sheet 2012 2011 Assets Cash 40k 50k Accts. Receivable 260k 200k Inventory 500k 450k Total current assets 800k 700k Fixed Assets,net 400k 300k Total Assets 1.2 million 1.0 million LIABILITIES AND EQUITY Accts.Payable 170k 130k Bank Loan 90k 90k Accruals 70k 50k Total current liabilities 330k 270k long term debt, 12% 400k 300k Common stock, $10 par 300k 300k Capital surplus 50k 50k Retained earnings 120k 80k Total liabilities & equity 1.2 million 1.0 million Income Statement Net sales 1.5 million 1.3 million Cost of goods sold 900k 780k Gross Profit 600k 520k Expenses: general &admin 150k 150k Marketing 150k 130k Depreciation 53k 40k Interest 57k 45k Earnings before taxes 190k 155k Income taxes 76k 62k Net income 114k 93k