Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help on this to!I would appreciate so much Check Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020
I need help on this to!I would appreciate so much
Check 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 $ 23,000 78,000 103,000 $ 204,000 50,000 125,000 (65,000) $ 314,000 $ 21,000 72,000 99,000 $ 192,000 49,000 110,000 (60,000) $ 282,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities Short-term debt Accounts payable Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively Retained earnings: $ 18,000 65,600 20,000 $ 103,600 22,000 $ 125,600 $ 17,000 76,000 18,000 $ 111,000 30,000 $ 141,000 $ 74,000 $ 59,000 20,000 $ 103,600 22,000 $ 125,600 18,000 $ 111,000 30,000 $ 141,000 $ 74,000 Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively Retained earnings: Beginning balance Net income for the year Dividends for the year Ending balance Total stockholders' equity Total liabilities and stockholders equity $ 59,000 $ 82,000 52,400 (20,000) $ 114,400 $ 188,400 $ 314,000 $ 85,000 2,000 (5,000) $ 82,000 $ 141,000 $ 282,000 Required: a. Calculate ROI for 2020. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Calculate ROE for 2020. (Round your answer to 1 decimal place.) c. Calculate working capital at December 31, 2020. d. Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) e. Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) f. 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). g. Assume that instead of paying $15,000 of accounts payable on December 31, 2020. Hames collected $15,000 of accounts receivable. What impact, if any, this receipt will have on the answers you calculated for parts a-d (increase, decrease, or no effect). a. ROI % b. ROE C. Working capital d. Current ratio Acid test ratio Ok f. ROI ROE nt Working capital Current ratio nces Increase g. ROI Decrease ROE No effect Working capital Current ratio hStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started