On the night of February 27, 2012, certain records of the Genmo Corporation were accidentally destroyed by fire. Two days after that, the principal owner had an appointment with an investor to discuss the possible sale of the company. The owner needed as much information as could be gathered for this purpose, recognizing that over a longer period of time a more complete reconstruction would be possible.
EXHIBIT 1
Genmo Corporation Financial Statements (thousands of dollars)

EXHIBIT 2
Selected Ratios

Questions
1. Prepare a balance sheet as of December 31, 2011, and the 2011 income statement.
2. What was the return on shareholders' equity for 2011?

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Balance Sheet As of December 31, 2010 Assets Current assets Cash Marketable secunities Accounts recelvable Inventories Prepaid expenses s 18 494 728 972 214 2.426 898 Total current assets 14,727 2.433 Real estate, plant, and equipment Less: Accumulated depreciation Special toos 2.294 594 $6,383 Total assets Liabilities and Shareholders Equity Current liabities S 232 266 1,232 2.230 250 951 3,431 Accounts payable Loans payable Accrued liabilities Total current Nabilities Long-term debt Other noncurrent iabilities Total Slabilities hareholders equity Preferred stock Common stock 25 54 667 2,206 2,952 6 383 Additional paid-in capital Retained earnings Total shareholders' equity Tatal labilies and shareholders equity Income Statement, 2010 Total revenues Cost of sales (excluding depreciation and amortization) Gross margin Other expenses Depreciation $9,779 8,165 1,614 Amortization of goodwill and special tools Selling, general, and adrninistrative expenses Provision for income taxes 278 343 430 163 9.379 -400 Total costs and espenses Net income 2011 0.671 1.172 10.005 39.66 15.12 2.831 2.091 62.15 2010 0.556 1.088 8.400 Acid-test ratio Current ratio Inventory tunover (times) Days receivables Gross margin percentage Profit margin percentage Invested capital turnover (times) Debt/equity ratio (percentage) Return on shareholders' equity 27.17 16,50 4,090 2.355 40.68 13.55