Question
In: Accounting
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019....
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.
|
Assets |
2020 |
2019 |
|
Cash |
$21,000 |
$19,000 |
|
Accounts receivable |
78,000 |
72,000 |
|
Merchandise inventory |
103,000 |
99,000 |
|
Total current assets |
$202,000 |
$190,000 |
|
Land |
50,000 |
40,000 |
|
Plant and equipment |
125,000 |
110,000 |
|
Less: Accumulated depreciation |
(65,000) |
(60,000) |
|
Total assets |
$312,000 |
$280,000 |
|
Liabilities |
||
|
Short-term debt |
$18,000 |
$17,000 |
|
Accounts payable |
$64,800 |
$75,000 |
|
Other accrued liabilities |
$20,000 |
$18,000 |
|
Total current liabilities |
$102,800 |
$110,000 |
|
Long-term debt |
$22,000 |
$30,000 |
|
Total liabilities |
$124,800 |
$140,000 |
|
Stockholders’ Equity |
||
|
Common stock, no par, 100,000 shares authorized |
$74,000 |
$59,000 |
|
Retained earnings: |
||
|
Beginning balance |
$81,000 |
$85,000 |
|
Net income for the year |
$52,200 |
$1,000 |
|
Dividends for the year |
(20,000) |
(5,000) |
|
Ending balance |
$113,200 |
$81,000 |
|
Total stockholders’ equity |
$187,200 |
$140,000 |
|
Total liabilities and stockholders’ equity |
$312,000 |
$280,000 |
- Calculate ROI for 2020. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) _______%
- Calculate ROE for 2020. (Round your answer to 1 decimal place.) _______
- Calculate working capital at December 31, 2020. _______
- Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) _______
- Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) _______
e
Solutions
Expert Solution
a. ROI FOR 2020:
Formula= Net income/ Average assets
Average assets=( Total assets for 2019+Total assets for 2020)/2
=($280,000+$312,000)/2
=$296,000
ROI FOR 2020= $52,200/$296,000
=17.63%
B. ROE FOR 2020:
Formula= Net income/Average Stockholder's equity
Average stockholder's equity=( stockholder's equity for 2019+stockholder's equity for 2020)/2
=($140,000+$187,200)/2
=$163,600
ROE FOR 2020: =$52,200/$163,600
=31.90%
C. WORKING CAPITAL AT DECEMBER 31,2020:
Formula= Current assets for 2020- Current liabilities for 2020
=$202,000-$102,800
WORKING CAPITAL AT DECEMBER 31,2020: =$99,200
D. CURRENT RATIO AT DECEMBER 31,2020
Formula= Current assets for 2020/Current liabilities for 2020
=$202,000/$102,800
CURRENT RATIO AT DECEMBER 31,2020= 1.96:1
E. ACID TEST RATIO AT DECEMBER 31,2020:
Formula= Current assets- inventory- prepaid expenses for 2020/ Current liabilities for 2020
=$202,000-$103,000/$102,800
=$99,000/$102,800
ACID TEST RATIO AT DECEMBER 31,2020:=0.96:1
ekkarill92 answered 1 year agoRelated Solutions
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019....
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 $1,700,000.
HAMES INC.
Balance Sheets
December 31, 2020 and 2019
2020
2019
Assets
Cash
$
63,000
$
57,000
Accounts receivable
285,000
266,000
Merchandise inventory
261,000
247,000
Total current assets
$
609,000
$
570,000
Land
109,000
82,000
Plant and equipment
375,000
330,000
Less: Accumulated depreciation
(195,000
)
(180,000
)
Total assets
$
898,000
$
802,000
Liabilities...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames,
Inc., at December 31, 2017 and 2016. Sales for the year ended
December 31, 2017, totaled $640,000.
HAMES, INC.,
Balance Sheets
December 31, 2017 and 2016
2017
2016
Assets
Cash
$
19,000
$
20,000
Accounts receivable
78,000
72,000
Merchandise inventory
103,000
99,000
Total current assets
$
200,000
$
191,000
Land
50,000
40,000
Plant and equipment
125,000
110,000
Less: Accumulated
depreciation
(65,000
)
(60,000
)
Total assets
$
310,000
$
281,000
Liabilities...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames,
Inc., at December 31, 2017 and 2016. Sales for the year ended
December 31, 2017, totaled $670,000.
HAMES, INC.,
Balance Sheets
December 31, 2017 and 2016
2017
2016
Assets
Cash
$
20,000
$
20,000
Accounts receivable
78,000
72,000
Merchandise inventory
103,000
99,000
Total current assets
$
201,000
$
191,000
Land
50,000
40,000
Plant and equipment
125,000
110,000
Less: Accumulated
depreciation
(65,000
)
(60,000
)
Total assets
$
311,000
$
281,000
Liabilities...
Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019...
Sunland Company’s comparative balance sheets are presented
below.
Sunland Company
Comparative Balance Sheets
December 31
2019
2018
Cash
$ 15,000
$ 10,200
Accounts receivable
21,400
23,800
Land
19,800
26,400
Buildings
70,100
70,100
Accumulated
depreciation—buildings
(15,300
)
(10,800
)
Total
$111,000
$119,700
Accounts payable
$ 12,800
$ 27,800
Common stock
74,600
73,400
Retained earnings
23,600
18,500
Total
$111,000
$119,700
Additional information:
1.
Net income was $22,800. Dividends declared and paid were
$17,700.
2.
No noncash investing and financing activities occurred during...
Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020...
Rojas Corporation’s comparative balance sheets are presented
below.
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$14,400
$10,000
Accounts receivable
20,800
23,000
Land
19,800
25,900
Buildings
70,300
70,300
Accumulated depreciation—buildings
(14,700
)
(10,600
)
Total
$110,600
$118,600
Accounts payable
$12,200
$27,600
Common stock
75,600
71,000
Retained earnings
22,800
20,000
Total
$110,600
$118,600
Additional information:
1.
Net income was $22,600. Dividends declared and paid were
$19,800.
2.
No noncash investing and financing activities occurred during
2020.
3.
The land...
Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...
Rodriquez Corporation’s comparative balance sheets are presented
below:
RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$16,600
$17,700
Accounts receivable
25,400
22,500
Investments
20,150
15,850
Equipment
60,050
70,150
Accumulated depreciation—equipment
(14,150
)
(10,500
)
Total
$108,050
$115,700
Accounts payable
$14,450
$11,050
Bonds payable
10,800
30,200
Common stock
50,000
44,800
Retained earnings
32,800
29,650
Total
$108,050
$115,700
Additional information:
1.
Net income was $18,750. Dividends declared and paid were
$15,600.
2.
Equipment which cost $10,100 and had accumulated depreciation...
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Pharoah Company’s comparative balance sheets are presented
below:
Pharoah Company
Comparative Balance Sheets
December 31
2020
2019
Cash
$ 17,000
$ 17,500
Accounts receivable
25,000
22,400
Investments
19,850
16,050
Equipment
60,050
69,750
Accumulated depreciation—equipment
(13,750
)
(10,400
)
Total
$108,150
$115,300
Accounts payable
$ 14,750
$ 11,250
Bonds payable
10,400
30,000
Common stock
49,500
45,200
Retained earnings
33,500
28,850
Total
$108,150
$115,300
Additional information:
1.Net income was $18,450. Dividends declared and paid were
$13,800.
2.Equipment which cost $9,700 and had...
Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...
Rodriquez Corporation’s comparative balance sheets are presented
below:
RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$16,700
$17,600
Accounts receivable
24,900
22,000
Investments
19,850
16,250
Equipment
59,950
69,950
Accumulated depreciation—equipment
(14,050
)
(10,300
)
Total
$107,350
$115,500
Accounts payable
$14,650
$11,050
Bonds payable
10,500
30,000
Common stock
49,900
44,900
Retained earnings
32,300
29,550
Total
$107,350
$115,500
Additional information:
1.
Net income was $18,650. Dividends declared and paid were
$15,900.
2.
Equipment which cost $10,000 and had accumulated depreciation...
Suppose the comparative balance sheets of Nike, Inc. are presented here. Nike, Inc. Comparative Balance Sheets...
Suppose the comparative balance sheets of Nike,
Inc. are presented here.
Nike, Inc.
Comparative Balance Sheets
May 31
($ in millions)
2020
2019
Assets
Current assets
$ 9,379
$ 8,300
Property, plant, and equipment (net)
1,836
1,700
Other assets
1,536
1,600
Total assets
$12,751
$11,600
Liabilities and Stockholders’ Equity
Current liabilities
$ 3,267
$ 3,300
Long-term liabilities
1,358
1,400
Stockholders’ equity
8,126
6,900
Total liabilities and stockholders’ equity
$12,751
$11,600
(a)
Prepare a horizontal analysis of the balance sheet data...
The comparative balance sheets for Metlock, Inc. as of December 31 are presented below. Metlock, Inc....
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December 31 Assets 2022 2021 Cash $ 66,640 $ 44,100 Accounts
receivable 49,000 56,840 Inventory 148,421 139,160 Prepaid expenses
14,974 20,580 Land 142,100 127,400 Buildings 196,000 196,000
Accumulated depreciation—buildings (58,800 ) (39,200 ) Equipment
220,500 151,900 Accumulated depreciation—equipment (44,100 )
(34,300 ) Total $734,735 $662,480 Liabilities and Stockholders’
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