Presented hem are the comparative balance sheets of Flames. Inc., at December 31, 2017 and 2016. Sales for the year ended December 31, 2017, totaled $1,700,000.

Required:
a. Calculate ROI for 2017. Round your percentage answer to two decimal places.
b. Calculate ROE for 2017. Round your percentage answer to one decimal place.
c. Calculate working capital at December 31, 2017.
d. Calculate the current ratio at December 31, 2017. Round your answer to two decimal places.
e. Calculate the acid-test ratio at December 31, 2017. Round your answer to two decimal places.
f. Assume that on December 31, 2017, the treasurer of Flames, Inc., decided to pay $50,000 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 $50,000 of accounts payable on December 31, 2017, Hames, Inc., collected $50,000 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).

HAMES, INC. Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Merchandise inventory S 63,000 285,000 261,000 .$609,000 109,000 375,000 195,000) $898,000 $ 57,000 266,000 247,000 $570,000 82,000 330,000 Total current assets Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities Short-term debt Accounts payable Other accrued liabilities $802,000 54,000 168,000 68.000 $290,000 56,000 . $346,000 51,000 144,000 54.000 $249,000 105,000 $354,000 Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par, 200,000 shares authorized, $224,000 80,000 and 50,000 shares issued, respectively Retained eamings: $286,000 102,000 $217,000 84.000 (15,000) 320,6000 $448,000 S802.000 Beginning balance Net income for the year Dividends for the year Ending balance Total st equity $552,000 Total liabilities and stockholders' equity $898,000