P6. Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011.
|
BALANCE SHEET |
2012 |
2011 |
|
ASSETS |
||
|
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 |
|
INCOME STATEMENT |
2012 |
2011 |
|
Net Sales |
$1,500,000 |
$1,300,000 |
|
Cost of Goods Sold |
$900,000 |
$780,000 |
|
INCOME STATEMENT |
2012 |
2011 |
|
Gross profit |
$600,000 |
$520,000 |
|
Expenses: General and Administrative |
$150,000 |
$150,000 |
|
Marketing |
$150,000 |
$150,000 |
|
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.
b. Explain how financial performance differed between 2012 and 2011.