The balance sheet shows Genmo Corporation had total assets of $7,202 as of December 31, 2010, with current assets of $2,678 and noncurrent assets of $4,524. Total liabilities (current and noncurrent) were $4,170, consisting of current liabilities of $2,285 and noncurrent liabilities of $1,885. Shareholders' equity was $3,032. The income statement shows Genmo Corporation had revenues of $10,281 and net income of $291 for the year ended December 31, 2010.

1. Exhibit A
GENMO CORPORATION
Balance Sheet as of December 31, 2010
Line Assets
1. Cash and marketable securities..........................................................................................................................
$ 416
2. Accounts receivable..........................................................................................................................................
1,117
3. Subtotal: quick assets ....................................................................................................................................
1,533
4. Inventories .......................................................................................................................................................
872
5. Prepaid expenses..............................................................................................................................................
273
6. Total current assets........................................................................................................................................
2,678
7. Noncurrent assets.............................................................................................................................................
4,524
8. Total assets................................................................................................................................................
$7,202
Liabilities and Equity
9. Current liabilities...............................................................................................................................................
$2,285
10. Noncurrent liabilities .........................................................................................................................................
$1,885
11. Shareholders’ equity .........................................................................................................................................
3,032
12. Total invested capital........................................................................................................................................
4,917
13. Total liabilities and shareholders’ equity.......................................................................................................
$7,202
Income Statement, 2010
14. Revenues.........................................................................................................................................................
$10,281
15. Cost of sales.....................................................................................................................................................
8,727
16. Gross margin....................................................................................................................................................
1,554
17. Other expense ..................................................................................................................................................
1,263
18. Net Income ......................................................................................................................................................
$ 291

2. Notes
Line
1. Line 3 - line 2
2. Revenue (10,281) * days’ receivables (39.66) / 365
3. Current liabilities (2,285) * quick ratio (0.671)
4. Cost of sales (line 15)  inventory turnover (10.005)
5. Line 6 - (line 3 + line 4)
6. Current liabilities (2,285) * current ratio (1.172)
7. Line 8 - line 6
8. Same as line 13
9. Given
10. Let debt = X; then X  (4,917 - X) = 0.6215 (debt/equity). Solving, X = 1,885. (The 4,917 comes
from line 12.)
11. Line 12 - line 10
12. Revenues (10,281) / invested capital turnover (2.091)
13. Line 9 + line 12
14. Given
15. Line 14 - line 16
16. Revenues (10,281) * gross margin percentage (0.1512)
17. Line 16- line 18
18. Revenue (10,281)* profit margin percentage (0.02831)