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. 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 HAMES INC. Balance Sheets December 31, 2020 and 2019 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 2020 $ 22,000 78,000 103,000 $ 203,000 50,000 125,000 (65,000) $ 313,000 $ 18,000 65,200 20,000 $ 103,200 22,000 $ 125,200 $ 74,000 $ 81,000 52,800 (20,000) $ 113,800 $ 187,800 $ 313,000 2019 $ 19,000 72,000 99,000 $ 190,000 40,000 110,000 (60,000) $ 280,000 $ 17,000 75,000 18,000 $ 110,000 30,000 $ 140,000 $ 59,000 $ 85,000 1,000 (5,000) $ 81,000 $ 140,000 $ 280,000 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.
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. 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 HAMES INC. Balance Sheets December 31, 2020 and 2019 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 2020 $ 22,000 78,000 103,000 $ 203,000 50,000 125,000 (65,000) $ 313,000 $ 18,000 65,200 20,000 $ 103,200 22,000 $ 125,200 $ 74,000 $ 81,000 52,800 (20,000) $ 113,800 $ 187,800 $ 313,000 2019 $ 19,000 72,000 99,000 $ 190,000 40,000 110,000 (60,000) $ 280,000 $ 17,000 75,000 18,000 $ 110,000 30,000 $ 140,000 $ 59,000 $ 85,000 1,000 (5,000) $ 81,000 $ 140,000 $ 280,000 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.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 51CE: Debt Management and Short-Term Liquidity Ratios The following items appear on the balance sheet of...
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