12:48 AM ezto.mheducation.com Presented here are the comparative balance sheets

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12:48 AM ezto.mheducation.com Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2014 and 2013. Sales for the year ended ..ooo Verizon December 31, 2014, totaled $580,000 Hames, Inc., Balance Sheets December 31, 2014 and 2013 2014 2013 Cash Accounts receivable Merchandise inventory S 23,000 78.000 103,000 s 20,000 72.000 99,000 Total current assets Land Plant and equipment s 204,000 50,000 125.000 S 191,000 40,000 110,000 Less: Accumulated depreciation Total assets S 314,000 $ 281,000 s 18,000 65.600 20,000 S 17,000 75.500 Short-derm debt Accounts payable Other accrued iabilities $ 103,600 22.000 s 110.500 30,000 Total current liabilities Long-term debt Total liabilities Stockholders Equity 125.600 $ 140.500 Common stock, no par, 100,000 shares authorized 40,000 and 25,000 shares issued, respectively S 74,000 $ 59,000 Retained eamings: Beginning balance Net income for the year Dividends for the year S 81,500 52900 S 85,000 1,500 (5,000) 114,400 188.400 $ 314,000 S 81,500 140.500 $ 281,000 Ending balance Total stockholders equity Total liabilities and stockholders' equity Required . Calculate ROI for 2014. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)

Explanation / Answer

a)ROI = Net income /Average asset

                 = 52900 / (314000+281000)/2

                = 52900 / (595000/ 2)

               = 52900 / 297500

             = .1778 or 17.78%

b)ROE = Net income /Average shareholders equity

            = 52900 / (188400+140500)/2

           = 52900 / (328900/2)

           = 52900 / 164450

             = .3217 or 32.2%

c)Working capital =current asset -current liabilities

                           = 204000-103600

                            = 100400

d) current ratio = current asset /current liabilities

                            = 204000/103600

                           = 1.97 :1

e)acid test ratio = (current asset - inventory )/current liabilities

                      = (204000 -103000 )103600

                        = 101000 / 103600

                     = .97 : 1

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