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 $560,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 19,000 $ 19,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 200,000 $ 190,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 310,000 $ 280,000 Liabilities Short-term debt $ 18,000 $ 17,000 Accounts payable 64,000 75,000 Other accrued liabilities 20,000 18,000 Total current liabilities $ 102,000 $ 110,000 Long-term debt 22,000 30,000 Total liabilities $ 124,000 $ 140,000 Stockholders’ Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively $ 74,000 $ 59,000 Retained earnings: Beginning balance $ 81,000 $ 85,000 Net income for the year 51,000 1,000 Dividends for the year (20,000 ) (5,000 ) Ending balance $ 112,000 $ 81,000 Total stockholders’ equity $ 186,000 $ 140,000 Total liabilities and stockholders’ equity $ 310,000 $ 280,000 Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) Assume that on December 31, 2020, the treasurer of Hames decided to pay $15,000 of accounts payable. What impact, if any, this payment will have on the answers you calculated for parts a-d (increase, decrease, or no effect)

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 $560,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 19,000 $ 19,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 200,000 $ 190,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 310,000 $ 280,000 Liabilities Short-term debt $ 18,000 $ 17,000 Accounts payable 64,000 75,000 Other accrued liabilities 20,000 18,000 Total current liabilities $ 102,000 $ 110,000 Long-term debt 22,000 30,000 Total liabilities $ 124,000 $ 140,000 Stockholders’ Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively $ 74,000 $ 59,000 Retained earnings: Beginning balance $ 81,000 $ 85,000 Net income for the year 51,000 1,000 Dividends for the year (20,000 ) (5,000 ) Ending balance $ 112,000 $ 81,000 Total stockholders’ equity $ 186,000 $ 140,000 Total liabilities and stockholders’ equity $ 310,000 $ 280,000 Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) Assume that on December 31, 2020, the treasurer of Hames decided to pay $15,000 of accounts payable. What impact, if any, this payment will have on the answers you calculated for parts a-d (increase, decrease, or no effect)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 $560,000.

HAMES INC. Balance Sheets December 31, 2020 and 2019
	2020	2019
Assets
Cash		$	19,000		$	19,000
Accounts receivable			78,000			72,000
Merchandise inventory			103,000			99,000
Total current assets		$	200,000		$	190,000
Land			50,000			40,000
Plant and equipment			125,000			110,000
Less: Accumulated depreciation			(65,000	)		(60,000	)
Total assets		$	310,000		$	280,000
Liabilities
Short-term debt		$	18,000		$	17,000
Accounts payable			64,000			75,000
Other accrued liabilities			20,000			18,000
Total current liabilities		$	102,000		$	110,000
Long-term debt			22,000			30,000
Total liabilities		$	124,000		$	140,000
Stockholders’ Equity
Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively		$	74,000		$	59,000
Retained earnings:
Beginning balance		$	81,000		$	85,000
Net income for the year			51,000			1,000
Dividends for the year			(20,000	)		(5,000	)
Ending balance		$	112,000		$	81,000
Total stockholders’ equity		$	186,000		$	140,000
Total liabilities and stockholders’ equity		$	310,000		$	280,000

Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.)
Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.)
Assume that on December 31, 2020, the treasurer of Hames decided to pay $15,000 of accounts payable. What impact, if any, this payment will have on the answers you calculated for parts a-d (increase, decrease, or no effect)

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