Calculate profitability and liquidity measures Presented here are the compara- tive balance sheets of Hames, Inc., at December 31, 2009 and 2008. Sales for the year ended December 31, 2009, totaled $580,000.

Required:

a. Calculate ROI for 2009. Round your percentage answer to two decimal places.

b. Calculate ROE for 2009. Round your percentage answer to one decimal place.

c. Calculate working capital at December 31, 2009.

d. Calculate the current ratio at December 31, 2009. Round your answer to two decimal places.

e. Calculate the acid-test ratio at December 31, 2009. Round your answer to two decimal places.

f. Assume that on December 31, 2009, the treasurer of Hames, Inc., decided to pay $15,000 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 $15,000 of accounts payable on December 31, 2009. Hames, Inc., collected $15,000 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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Assets HAMES, INC. Balance Sheets December 31, 2009 and 2008 Cash. Accounts receivable.. Merchandise inventory. Total current assets.. Land.... Plant and equipment.. Less: Accumulated depreciation. Total assets.... Liabilities Short-term debt 2009 2008 $ 21,000 $ 19,000 78,000 72,000 103,000 99,000 $202,000 $190,000 50,000 40,000 125,000 110,000 (65,000) (60,000) $312,000 $280,000 $ 18,000 $ 17,000 Accounts payable. Other accrued liabilities Total current liabilities. Long-term debt..... Total liabilities. 56,000 20,000 $ 94,000 22,000 $116,000 48,000 18,000 $ 83,000 30,000 $113,000