Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011.
GENATRON MANUFACTURING CORPORATION
Balance sheet
2012 2011
Assets
Cash $40,000 $50,000
Accounts receivable 260,000 200,000
Inventory 500,000 450,000
Total current assets 800,000 700,000
AND SO ON
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 & admin 150,000 150,000
Marketing 150,000 130,000
Depreciation 53,000 40,000
Interest 57,000 45,000
Earning 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.
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