Problem $3-20($Static$)$ Calculate profitability and liquidity measures LO $3-3,3-4,3-6$

Presented here are the comparative balance sheets of Hames Incorporated at December $31,2023$ and $2022.$ Sales for the year ended December $31,2023,$ totaled $$1,700,000.$

HAMES INCORPORATED

Balance Sheets

December $31,2023$ and $2022$

$20232022$

Assets

Cash $ $63,000$ $ $57,000$

Accounts receivable $285,000266,000$

Merchandise inventory $261,000247,000$

Total current assets $ $609,000$ $ $570,000$

Land $109,00082,000$

Plant and equipment $375,000330,000$

Less: Accumulated depreciation $(195,000)(180,000)$

Total assets $ $898,000$ $ $802,000$

Liabilities

Short$-$term debt $ $54,000$ $ $51,000$

Accounts payable $168,000144,000$

Other accrued liabilities $68,00054,000$

Total current liabilities $ $290,000$ $ $249,000$

Long$-$term debt $56,000105,000$

Total liabilities $ $346,000$ $ $354,000$

Stockholders$$ Equity

Common stock, no par, $200,000$ shares authorized, $80,000$ and $50,000$ shares issued, respectively $ $224,000$ $ $162,000$

Retained earnings:

Beginning balance $ $286,000$ $ $217,000$

Net income for the year $102,00084,000$

Dividends for the year $(60,000)(15,000)$

Ending balance $ $328,000$ $ $286,000$

Total stockholders$$ equity $ $552,000$ $ $448,000$

Total liabilities and Stockholders$$ equity $ $898,000$ $ $802,000$

Required:

Calculate ROI for $2023.$

Calculate ROE for $2023.$

Note: Round your answer to $1$ decimal place.

Calculate working capital at December $31,2023.$

Calculate the current ratio at December $31,2023.$

Note: Round your answer to $2$ decimal places.

Calculate the acid$-$test ratio at December $31,2023.$

Note: Round your answer to $2$ decimal places.

Assume that on December $31,2023,$ the treasurer of Hames decided to pay $$50,000$ of accounts payable. What impact, if any, this payment will have on the answers you calculated for parts a$$d $($increase$,$ decrease, or no effect$)$

Assume that instead of paying $$50,000$ of accounts payable on December $31,2023.$ Hames collected $$50,000$ 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$).$

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