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 $610,000.

HAMES INC.

Balance Sheets

December 31, 2020 and 201920202019AssetsCash$20,000$20,000Accounts receivable78,00072,000Merchandise inventory103,00099,000Total current assets$201,000$191,000Land50,00040,000Plant and equipment125,000110,000Less: Accumulated depreciation(65,000)(60,000)Total assets$311,000$281,000LiabilitiesShort-term debt$18,000$17,000Accounts payable64,40075,500Other accrued liabilities20,00018,000Total current liabilities$102,400$110,500Long-term debt22,00030,000Total liabilities$124,400$140,500Stockholders' EquityCommon stock, no par, 100,000 shares authorized

40,000 and 25,000 shares issued, respectively$74,000$59,000Retained earnings:Beginning balance$81,500$85,000Net income for the year51,1001,500Dividends for the year(20,000)(5,000)Ending balance$112,600$81,500Total stockholders' equity$186,600$140,500Total liabilities and stockholders' equity$311,000$281,000

Required:

1. Calculate ROI for 2020.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
2. Calculate ROE for 2020.(Round your answer to 1 decimal place.)
3. Calculate working capital at December 31, 2020.
4. Calculate the current ratio at December 31, 2020.(Round your answer to 2 decimal places.)
5. Calculate the acid-test ratio at December 31, 2020.(Round your answer to 2 decimal places.)
6. 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 partsa-d(increase, decrease, or no effect).
7. 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 partsa-d(increase, decrease, or no effect).