Calculate profitability and liquidity measures. Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2014 and 2013. Sales for the year ended December 31, 2014, totaled $870,000.

Required:
a. Calculate ROI for 2014. Round your percentage answer to two decimal places.
b. Calculate ROE for 2014. Round your percentage answer to one decimal place.
c. Calculate working capital at December 31, 2014.
d. Calculate the current ratio at December 31, 2014. Round your answer to two decimal places.
e. Calculate the acid-test ratio at December 31, 2014. Round your answer to two decimal places.
f. Assume that on December 31, 2014, the treasurer of Hames, Inc., decided to pay $22,500 of accounts payable. Explain what impact, if any, this payment will have on the answers you calculated for parts a-d (increase, decrease, or no effect).
g. Assume that instead of paying $22,500 of accounts payable on December 31, 2014, Hames, Inc., collected $22,500 of accounts receivable. Explain what impact, if any, this receipt will have on the answers you calculated for parts a-d (increase, decrease, or no effect).

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HAMES, INC. Balance Sheets December 31, 2014 and 2013 2014 2013 Assets Cash.. Merchandise inventoryPSew Land 117,000 154,500 Total current assets x$303,000 75,000 187,500 (97,500) $28,500 108,000 148,500 $285,000 60,000 165,000 90,000 $420,000 Less: Accumulated depreciation . Total assets Liabilities Short-term debt$27,000 84,000 30,000 $141,000 33,000 $174,000 $25,500 72,000 27,000 $124,500 45,000 $169,500 Accounts payable. Other accrued liabilities. .a *_.. Total curent liabilitiesO Long-term debt... Total liabilities. Stockhoiders' Equity Common stock, no par, 100,000 shares authorized, 40,000 and 25,000 shares issued, respectively ....$111,000 $88,500 Retained earnings: Beginning balance. .S162,000 51,000 (30,000) Ending balance. ...$183,000 $294,000 $468,000 $127,500 42,000 7,500) $162,000 $250,500 $420,000 Net income for the year. Dividends for the yeaww Total liabilities and stockholders' equity.