Question: These are all on the same worksheet/question Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking

These are all on the same worksheet/question

These are all on the same worksheet/question Two acquaintances have approached you

about investing in business activities in which each is involved. Simone isseeking $755, and Riley needs $620. One year from now, your originalinvestment will be returned, along with $68 income from Simone or $71

Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $755, and Riley needs $620. One year from now, your original investment will be returned, along with $68 income from Simone or $71 income from Riley. You can make only one investment. Required: a-1. Compute the ROI of Simone and Riley. (Round your answers to 2 decimal places.) ROI Simone % % Riley a-2. Which investment would you prefer? O Riley O Simone b. What other factors should you consider before making either investment? O Fluctuation O Risk Evans Inc. had current liabilities at April 30 of $79,300. The firm's current ratio at that date was 1.8. Required: a. Calculate the firm's current assets and working capital at April 30. b. Assume that management paid $17,800 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.) c. Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 payment. a. Current assets Working capital b. Current ratio Working capital Working capital C. Current ratio Problem 3-18 (Algo) Calculate profitability and liquidity measures LO 3, 4, 6 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 $670,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 $ 23,000 78,000 103,000 $ 204,000 50,000 125,000 (65,000) $ 314,000 $ 19,000 72,000 99,000 $ 190,000 40,000 110,000 (60,000) $ 280,000 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, 100,000 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 $ 18,000 65,600 20,000 $ 103,600 22,000 $ 125,600 $ 17,000 75,000 18,000 $ 110,000 30,000 $ 140,000 $ 74,000 $ 59,000 $ 81,000 53,400 (20,000) $ 114,400 $ 188, 400 $ 314,000 $ 85,000 1,000 (5,000) $ 81,000 $ 140,000 $ 280,000 Required: a. Calculate ROI for 2020. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Calculate ROE for 2020. (Round your answer to 1 decimal place.) c. Calculate working capital at December 31, 2020. d. Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.) e. Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.) f. Assume that on December 31, 2020, 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, 2020. 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). a. ROI % b. C. ROE Working capital Current ratio d. e. Acid test ratio f. ROI ROE Working capital Current ratio ROI g. ROE Working capital Current ratio

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!