Required information {The following information applies to the questions displayed below.) A company makes the payment of a one-year insurance premium of $3,768 on March 1, 2019. d. If the premium had been $7,536 for a two-year period, how should the prepaid amount at December 31, 2019, be reported on the balance sheet? Non-current asset Current asset 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 $590,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 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 $ 19,000 78,000 103,000 $ 200,000 50,000 125,000 (65,000) $ 310,000 $ 21,000 72,000 99,000 $ 192,000 40,000 110,000 (60,000) $ 282,000 $ 18,000 64,000 20,000 $ 102,000 22,000 $ 124,000 $ 17,000 76,000 18,000 $ 111,000 30,000 $ 141,000 Check $ 74,000 $ 59,000 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 $ 82,000 50,000 (20,000) $ 112,000 $ 186,000 $ 310,000 $ 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). payment will have on the answers you calculated for parts a d increase, decrease, or no effect). 9. 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. RI b. ROE c. Working capital d. Current ratio e. Acid test ratio L ROI ROE Working capital Current ratio 9 ROI ROE Working capital Current ratio
