Questions by larkin.abraham - Page 13
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 $580,000.HAMES INC.Balance SheetsDecember 31, 2020 and 20192020 2019Assets Cash $ 24,000 $ 21,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 205,000 $ 192,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000) (60,000) Total assets $ 315,000 $ 282,000 Liabilities Short-term debt $ 18,000 $ 17,000 Accounts payable 66,000 76,000 Other accrued liabilities 20,000 18,000 Total current liabilities $ 104,000 $ 111,000 Long-term debt 22,000 30,000 Total liabilities $ 126,000 $ 141,000 Stockholders Equity Common stock, no par, 100,000 shares authorized40,000 and 25,000 shares issued, respectively $ 74,000 $ 59,000 Retained earnings: Beginning balance $ 82,000 $ 85,000 Net income for the year 53,000 2,000 Dividends for the year (20,000) (5,000) Ending balance $ 115,000 $ 82,000 Total stockholders equity $ 189,000 $ 141,000 Total liabilities and stockholders equity $ 315,000 $ 282,000 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.)