Firm L had net assets at the end of the year of $415,000. The only transactions affecting stockholders' equity during the year were net income of $74,000 and dividends of $44,000. Required: Calculate Firm L's average stockholders' equity and return on equity (ROE). Beginning stockholders' equity Average Stockholders' Equity Ending stockholders' equity 2 Average Stockholders' Equity $ 415,000 2 Return on Equity Net income $ Average stockholders' equity Return on Equity 74,000/ Jay Oullette, CEO of Bumper to Bumper Inc., anticipates that his company's year-end balance sheet will show current assets of $12,747 and current liabilities of $7,500. Oullette has asked your advice concerning a possible early payment of $3,910 of accounts payable before year-end, even though payment isn't due until later. Required: a. Calculate the firm's working capital and current ratio under each situation. b. Assume that Bumper to Bumper had negotiated a short-term bank loan of $7,000 that can be drawn down either before or after the end of the year. Calculate working capital and the current ratio at year-end under each situation, assuming that early payment of accounts payable is not made. When would you recommend that the loan be taken? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Assume that Bumper to Bumper had negotiated a short-term bank loan of $7,000 that can be drawn down either before or after the end of the year. Calculate working capital and the current ratio at year-end under each situation, assuming that early payment of accounts payable is not made. (Round "Current ratio" answers to 1 decimal place.) Without Loan With Loan Working capital Current ratio $ 5,247 1.7 Retained earnings, December 31, 2019 Decrease in total liabilities during 2019 Gain on the sale of buildings during 2019 Dividends declared and paid in 2019. $231,330 50,380 17,710 4,950 Proceeds from sale of common stock in 2019. 54,340 Net income for the year ended December 31, 2019 24,860 Required: From the above data, calculate the retained earnings balance as of December 31, 2018. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Statement of Stockholders' Equity (Partial) For Year Ended December 31, 2019 Retained earnings, December 31, 2018 Add: Net income Add: Net loss Retained earnings, December 31, 2019