Problem 3.12
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Calculate profitability and liquidity
measures Presented here are the comparative balance
sheets of Hames, Inc., at December 31, 2011 and 2010. Sales for the year ended
December 31, 2011, totaled $580,000.
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Required:
a.
Calculate
ROI for 2011. Round your percentage answer to two decimal places.
b.
Calculate
ROE for 2011. Round your percentage answer to one decimal place.
c.
Calculate
working capital at December 31, 2011.
d.
Calculate
the current ratio at December 31, 2011. Round your answer to two decimal
places.
e.
Calculate
the acid-test ratio at December 31, 2011. Round your answer to two decimal
places.
f.
Assume
that on December 31, 2011, the treasurer of Hames, Inc., decided to pay $15,000
of accounts payable. Explain 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, 2011, Hames,
Inc., collected $15,000 of accounts receivable. Explain what impact, if any,
this receipt will have on the answers you calculated for parts a–d
(increase, decrease, or no effect).