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Prob 14-6 Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011. GENATRON MANUFACTURING CORPORATION BALANCE...

Finance question help - 3 in depth problems.

Prob 14-6 Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011. GENATRON MANUFACTURING CORPORATION BALANCE SHEET ASSETS 2012 2011 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 GENATRON MANUFACTURING CORPORATION INCOME STATEMENT 2012 2011 Net sales $1,500,000 $1,300,000 Cost of goods sold $900,000 $780,000 Gross profit $600,000 $520,000 Expenses: general and administrative $150,000 $150,000 Marketing $150,000 $130,000 Depreciation $53,000 $40,000 Interest $57,000 $45,000 Earnings before taxes $190,000 $155,000 Income taxes $76,000 $62,000 Net income $114,000 $93,000 a. Apply Du Pont analysis to both the 2012 and 2011 financial statements’ data. 2011 2012 Net Income Sales Total Assets Equity ROE b. Explain how financial performance differed between 2012 and 2011. Prob 14-7 This problem uses the financial statements for the Genatron Manufacturing Corporation for the years 2012 and 2011 from Problem 6. a. Calculate Genatron’s dollar amount of net working capital in each year. Net Working Capital 2011 2012 b. Calculate the current ratio and the acid-test ratio in each year. Current Ratio 2011 2012 Acid-test ratio 2011 2012 c. Calculate the average collection period and the inventory turnover ratio in each year. Average collection period 2011 2012 Inventory turnover 2011 2012 d. What changes in the management of Genatron’s current assets seem to have occurred between the two years? Prob 14-8 be retained in the business. EFN = ((TA/NS)*(∆NS)) - (((AP + AC)/NS)*∆NS) - (((NS13)*(NPM))/(NS)*(RR)) 2013 Forecasted sales (NS13) Change in sales (∆NS) Total assets (TA) Net sales (NS) Accounts payable (AP) Accruals (AC) Net profit margin (NPM) Percent of net income retained in firm (RR) EFN Genatron Manufacturing expects its sales to increase by 10 percent in 2013. Estimate the firm’s external financing needs by using the percent-of-sales method for the 2012 data. Assume that no excess capacity exists and that one-half of the 2012 net income will
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