Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $630,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 19,000 $ 20,000 Accounts receivable 78,000 72,800 Merchandise inventory 103,000 $ 200,000 99,e00 $ 191,e00 Total current assets Land 50,000 125,000 40,000 110,000 Plant and equipment Less: Accumulated depreciation (65,000) $ 310,000 (60,e00) $ 281,000 Total assets Liabilities Short-term debt $ 18,000 $ 17,000 Accounts payable 64,000 75,500 18,000 $ 110,500 30,000 $ 140,500 other accrued liabilities Total current liabilities Long-term debt 20,000 $ 102,000 22,000 $ 124,000 Total liabilities stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25, 000 shares issued, respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total stockholders' equity $ 74,000 $ 59,000 $ 81,500 $ 85,000 1,500 (5,e00) $ 81,500 $ 140,500 $ 281,000 50,500 (20,000) $ 112,000 $ 186,000 $ 310,000 Total liabilities and stockholders' equity Required: a. Calculate ROI for 2020. (Do not round Intermedlate calculatlons. Round your final answer to 2 declmal places.) b. Calculate ROE for 2020. (Round your answer to 1 decimal place.) c. Calculate worklng capital at December 31, 2020. d. Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) e. Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) f. Assume that on December 31, 2020, the treasurer of Hames decided to pay $15,000 of accounts payable. What Impact, if any, this payment wll have on the answers you calculated for parts a-d (Increase, decrease, or no effect). g. Assume that Instead of paylng $15,000 of accounts payable on December 31, 2020. Hames collected $15,000 of accounts recelvable. What Impact, if any, this recelpt will have on the answers you calculated for parts a-d (Increase, decrease, or no effect). a. ROI b. ROE C. Working capital d. Current ratio e. Acid test ratio f. ROI ROE Working capital Current ratio g. ROI ROE Working capital Current ratio

Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $630,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 19,000 $ 20,000 Accounts receivable 78,000 72,800 Merchandise inventory 103,000 $ 200,000 99,e00 $ 191,e00 Total current assets Land 50,000 125,000 40,000 110,000 Plant and equipment Less: Accumulated depreciation (65,000) $ 310,000 (60,e00) $ 281,000 Total assets Liabilities Short-term debt $ 18,000 $ 17,000 Accounts payable 64,000 75,500 18,000 $ 110,500 30,000 $ 140,500 other accrued liabilities Total current liabilities Long-term debt 20,000 $ 102,000 22,000 $ 124,000 Total liabilities stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25, 000 shares issued, respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total stockholders' equity $ 74,000 $ 59,000 $ 81,500 $ 85,000 1,500 (5,e00) $ 81,500 $ 140,500 $ 281,000 50,500 (20,000) $ 112,000 $ 186,000 $ 310,000 Total liabilities and stockholders' equity Required: a. Calculate ROI for 2020. (Do not round Intermedlate calculatlons. Round your final answer to 2 declmal places.) b. Calculate ROE for 2020. (Round your answer to 1 decimal place.) c. Calculate worklng capital at December 31, 2020. d. Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) e. Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) f. Assume that on December 31, 2020, the treasurer of Hames decided to pay $15,000 of accounts payable. What Impact, if any, this payment wll have on the answers you calculated for parts a-d (Increase, decrease, or no effect). g. Assume that Instead of paylng $15,000 of accounts payable on December 31, 2020. Hames collected $15,000 of accounts recelvable. What Impact, if any, this recelpt will have on the answers you calculated for parts a-d (Increase, decrease, or no effect). a. ROI b. ROE C. Working capital d. Current ratio e. Acid test ratio f. ROI ROE Working capital Current ratio g. ROI ROE Working capital Current ratio

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Description: Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year endedDecember 31, 2020, totaled $630,000.HAMES INC.Balance SheetsDecember 31, 2020 and 201920202019AssetsCash$ 19,000$ 20,000Accounts r

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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