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 $500,000.AssetsCashAccounts receivableMerchandise inventoryTotal current assetsLandPlant and equipmentLess: Accumulated depreciationTotal assetsLiabilitiesShort-term debtAccounts payableOther accrued liabilitiesTotal current liabilitiesLong-term debtTotal liabilitiesStockholders' EquityCommon stock, no par, 100,eee shares authorized 40,000 and 25,000 shares issued,respectivelyRetained earnings:Beginning balanceNet income for the yearDividends for the yearEnding balanceTotal stockholders' equityTotal liabilities and stockholders' equityHAMES INCORPORATEDBalance SheetsDecember 31, 2023 and 2022Note: Round your answer to 1 decimal place.c. Calculate working capital at December 31, 2023.d. Calculate the current ratio at December 31, 2023.Note: Round your answer to 2 decimal places.e. Calculate the acid-test ratio at December 31, 2023.a. ROIb. ROEc. Working capitald. Current ratioe. Acid test ratiof. ROIf. ROEf. Working capitalf. Current ratiog. ROI9. ROEg. Working capitalg. Current ratio20239696$ 21,00078,000103,000$ 202,00050,000125,000(65,000)$ 312,000$ 18,00064,80020,000Required:a. Calculate ROI for 2023.Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places.b. Calculate ROE for 2023.$ 102,80022,000$ 124,800$ 74,000$ 81,00052,200(20,000)$ 113,200$ 187,200$ 312,0002822$ 19,00072,00099,000$ 190,00040,000110,000(60,000)$ 280,000$ 17,00075,00018,000Note: Round your answer to 2 decimal places.f. Assume that on December 31, 2023, the treasurer of Hames decided to pay $15,000 of accounts payable. What Impact, if any, this payment will haveon 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, 2023. Hames collected $15,000 of accounts receivable. What Impact, Ifany, this receipt will have on the answers you calculated for parts a-d (increase, decrease, or no effect).$ 110,00030,000$ 140,000$ 59,000$85,0001,000(5,000)$ 81,000$ 140,000$ 280,000

Accounting ratios are financial ratios through which a company can analyze its performance in terms…

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 $500,000. 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 Stockholders' Equity Common stock, no par, 108,eee 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 a. ROI b. ROE c. Working capital d. Current ratio HAMES INCORPORATED Balance Sheets December 31, 2023 and 2022 e. Acid test ratio f. ROI f. ROE f. Working capital f. Current ratio g. ROI 9. ROE g. Working capital g. Current ratio 2023 96 96 $ 21,000 78,000 103,000 $ 202,000 50,000 125,000 (65,000) $ 312,000 Required: a. Calculate ROI for 2023. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. b. Calculate ROE for 2023. $ 18,000 64,800 20,000 $ 102,800 22,000 $ 124,800 $ 74,000 $ 81,000 52,200 (20,000) $ 113,200 $ 187,200 $ 312,000 2822 $ 19,000 72,000 99,000 $ 190,000 40,000 110,000 (60,000) $ 280,000 Note: Round your answer to 1 decimal place. c. Calculate working capital at December 31, 2023. d. Calculate the current ratio at December 31, 2023. Note: Round your answer to 2 decimal places. e. Calculate the acid-test ratio at December 31, 2023. Note: Round your answer to 2 decimal places. f. Assume that on December 31, 2023, 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, 2023. 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). $ 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

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 $500,000. 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 Stockholders' Equity Common stock, no par, 108,eee 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 a. ROI b. ROE c. Working capital d. Current ratio HAMES INCORPORATED Balance Sheets December 31, 2023 and 2022 e. Acid test ratio f. ROI f. ROE f. Working capital f. Current ratio g. ROI 9. ROE g. Working capital g. Current ratio 2023 96 96 $ 21,000 78,000 103,000 $ 202,000 50,000 125,000 (65,000) $ 312,000 Required: a. Calculate ROI for 2023. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. b. Calculate ROE for 2023. $ 18,000 64,800 20,000 $ 102,800 22,000 $ 124,800 $ 74,000 $ 81,000 52,200 (20,000) $ 113,200 $ 187,200 $ 312,000 2822 $ 19,000 72,000 99,000 $ 190,000 40,000 110,000 (60,000) $ 280,000 Note: Round your answer to 1 decimal place. c. Calculate working capital at December 31, 2023. d. Calculate the current ratio at December 31, 2023. Note: Round your answer to 2 decimal places. e. Calculate the acid-test ratio at December 31, 2023. Note: Round your answer to 2 decimal places. f. Assume that on December 31, 2023, 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, 2023. 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). $ 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

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.10E

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