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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

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 $630,000.

HAMES INC. Balance Sheets December 31, 2020 and 2019

2020

2019

Assets

Cash

$

24,000

$

20,000

Accounts receivable

78,000

72,000

Merchandise inventory

103,000

99,000

Total current assets

$

205,000

$

191,000

Land

50,000

40,000

Plant and equipment

125,000

110,000

Less: Accumulated depreciation

(65,000

)

(60,000

)

Total assets

$

315,000

$

281,000

Liabilities

Short-term debt

$

18,000

$

17,000

Accounts payable

66,000

75,500

Other accrued liabilities

20,000

18,000

Total current liabilities

$

104,000

$

110,500

Long-term debt

22,000

30,000

Total liabilities

$

126,000

$

140,500

Stockholders Equity

Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively

$

74,000

$

59,000

Retained earnings:

Beginning balance

$

81,500

$

85,000

Net income for the year

53,500

1,500

Dividends for the year

(20,000

)

(5,000

)

Ending balance

$

115,000

$

81,500

Total stockholders equity

$

189,000

$

140,500

Total liabilities and stockholders equity

$

315,000

$

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 parts 1-4(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 parts 1-4 (increase, decrease, or no effect).

Need help with 6 and 7 the most

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