Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a-e please HAMES INC Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash Accounts receivable Merchandise inventory 23,000 78,000 103,000 $ 204,000 50,000

a-e please image text in transcribed
image text in transcribed
HAMES INC Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash Accounts receivable Merchandise inventory 23,000 78,000 103,000 $ 204,000 50,000 125,000 $20,000 72,000 99,000 $191,000 40,000 110,000 (60,000) Total current assets Land Plant and equipment Less: Accumulated depreciation (65,000) $ 314,000 Total assets $281,000 Liabilities Short-term debt Accounts payable Other accrued liabilities $ 17,000 75,500 18,000 $ 110,500 30,000 $140,500 $ 18,000 65,600 20,000 $103,600 22,000 $125,600 Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,00D shares issued, respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total atockholders' equity $ 74,000 $ 59,000 $ 81,500 52,900 (20,000) $114,400 $188,400 $ 85,000 1,500 (5,000) $ 81,500 $140,500 Total liabilities and stockholders' equity $ 314,000 $281,000 d. Calculate the current ratio at December 31, 2020. (R e. Calculate the acid-test ratio at December 31, 2020. ( f. Assume that on December 31, 2020, the treasurer o: payment will have on the answers you calculated for g. Assume that instead of paying $15,000 of accounts p receivable. What impact, if any, this receipt will have Answer is not complete. ROI . ROE Working capital . d. Current ratio Acid test ratio . ROI Increase No effect ROE Working capital No effect Current ratio Increase No effect ROI ROE No effect Working capital No effect Current ratio No effect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Principles And Practices In Singapore

Authors: Dr Ernest Kan

5th Edition

9814838136, 978-9814838139

More Books

Students also viewed these Accounting questions

Question

What are the three types of tax authority? Who issues each type?

Answered: 1 week ago