The 2021 balance sheet for hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets Cash $ 240 Short-term investments 190 Accounts receivable 240 Inventory 330 Property, plant, and equipment (net) 1,400 Total assets $ 2,400 Liabilities and Shareholders’ Equity Current liabilities $ 440 Long-term liabilities 390 Paid-in capital 950 Retained earnings 620 Total liabilities and shareholders’ equity $ 2,400 The company’s 2021 income statement reported the following amounts ($in thousands): Net sales $5,000 Interest expense 40 Income tax expense 140 Net income 200 Required: Calculate the current ratio. (Round your answer to 2 decimal places.) Calculate the acid-test ratio. (Round your answer to 3 decimal places.) Calculate the debt to equity ratio. (Round your answer to 2 decimal places.) Calculate the times interest earned ratio. (Round your answer to 1 decimal places.)
The 2021
HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2021
($ in thousands)
Assets
Cash $ 240
Short-term investments 190
Inventory 330
Property, plant, and equipment (net) 1,400
Total assets $ 2,400
Liabilities and Shareholders’ Equity
Current liabilities $ 440
Long-term liabilities 390
Paid-in capital 950
Total liabilities and shareholders’ equity $ 2,400
The company’s 2021 income statement reported the following amounts ($in thousands):
Net sales $5,000
Interest expense 40
Income tax expense 140
Net income 200
Required:
- Calculate the
current ratio . (Round your answer to 2 decimal places.) - Calculate the acid-test ratio. (Round your answer to 3 decimal places.)
- Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
- Calculate the times interest earned ratio. (Round your answer to 1 decimal places.)
1 Current ratio ___________
2 Acid-test ratio ___________
3 Debt to equity ratio ___________
4 Times interest earned ratio ____________ times
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