Following are financial statements for the Genatron Manufacturing Corporation for 2017 and 2016.

a. Apply DuPont analysis to the 2017 and 2016 financial statements data.

b. Explain how financial performance differed between 2017 and 2016.

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Genatron Manufacturing Corporation Balance Sheet 2017 2016 ASSETS Cash $40,000 $50,000 Accts. receivable 260,000 200,000 Inventory 500,000 450,000 800,000 Total current assets 700,000 Fixed assets, net 400,000 300,000 Total assets $1,200,000 $1,000,000 LIABILITIES AND EQUITY $170,000 Accts. payable $130,000 90,000 Bank loan 90,000 50,000 Accruals 70,000 330,000 270,000 Total current liabilities 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 2017 2016 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