Day 7 1) The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets Cash $ 310 Short-term investments 260 Accounts receivable 310 Inventory 320 Property, plant, and equipment (net) 2,100 Total assets $ 3,300 Liabilities and Shareholders’ Equity Current liabilities $ 510 Long-term liabilities 460 Paid-in capital 1,300 Retained earnings 1,030 Total liabilities and shareholders’ equity $ 3,300 The company’s 2021 income statement reported the following amounts ($ in thousands): Net sales $ 5,700 Interest expense 100 Income tax expense 100 Net income 270 Required: 1. Calculate the current ratio. (Round your answer to 2 decimal places.) 2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.) 3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
Day 7 1) The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets Cash $ 310 Short-term investments 260 Accounts receivable 310 Inventory 320 Property, plant, and equipment (net) 2,100 Total assets $ 3,300 Liabilities and Shareholders’ Equity Current liabilities $ 510 Long-term liabilities 460 Paid-in capital 1,300 Retained earnings 1,030 Total liabilities and shareholders’ equity $ 3,300 The company’s 2021 income statement reported the following amounts ($ in thousands): Net sales $ 5,700 Interest expense 100 Income tax expense 100 Net income 270 Required: 1. Calculate the current ratio. (Round your answer to 2 decimal places.) 2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.) 3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Day 7 1)
The 2021
| HALLBROOK INDUSTRIES, INC. | |||
| Balance Sheet | |||
| December 31, 2021 | |||
| ($ in thousands) | |||
| Assets | |||
| Cash | $ | 310 | |
| Short-term investments | 260 | ||
| 310 | |||
| Inventory | 320 | ||
| Property, plant, and equipment (net) | 2,100 | ||
| Total assets | $ | 3,300 | |
| Liabilities and Shareholders’ Equity | |||
| Current liabilities | $ | 510 | |
| Long-term liabilities | 460 | ||
| Paid-in capital | 1,300 | ||
| 1,030 | |||
| Total liabilities and shareholders’ equity | $ | 3,300 | |
The company’s 2021 income statement reported the following amounts ($ in thousands):
| Net sales | $ | 5,700 | |
| Interest expense | 100 | ||
| Income tax expense | 100 | ||
| Net income | 270 | ||
Required:
1. Calculate the
2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.)
3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)
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