Genatron Manufacturing Corporation

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?