The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 200 Short-term investments 150 Accounts receivable 200 Inventory 350 Property, plant, and equipment (net) 1,000 Total assets $ 1,900 Liabilities and Shareholders’ Equity Current liabilities $ 400 Long-term liabilities 350 Paid-in capital 750 Retained earnings 400 Total liabilities and shareholders’ equity $ 1,900 The company’s 2024 income statement reported the following amounts ($ in thousands): Net sales $ 4,600 Interest expense 40 Income tax expense 100 Net income 160 Required: Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned ratio. Note: Round your answer to 1 decimal place.

The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 200 Short-term investments 150 Accounts receivable 200 Inventory 350 Property, plant, and equipment (net) 1,000 Total assets $ 1,900 Liabilities and Shareholders’ Equity Current liabilities $ 400 Long-term liabilities 350 Paid-in capital 750 Retained earnings 400 Total liabilities and shareholders’ equity $ 1,900 The company’s 2024 income statement reported the following amounts ($ in thousands): Net sales $ 4,600 Interest expense 40 Income tax expense 100 Net income 160 Required: Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned ratio. Note: Round your answer to 1 decimal place.

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Description: The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below.HALLBROOK INDUSTRIES, INCORPORATEDBalance SheetDecember 31, 2024($ in thousands)Assets Cash$ 200Short-term investments150Accounts receivable200Inventory350Property, plant,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.2C

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HALLBROOK INDUSTRIES, INCORPORATED
Balance Sheet
December 31, 2024
($ in thousands)
Assets
Cash	$ 200
Short-term investments	150
Accounts receivable	200
Inventory	350
Property, plant, and equipment (net)	1,000
Total assets	$ 1,900
Liabilities and Shareholders’ Equity
Current liabilities	$ 400
Long-term liabilities	350
Paid-in capital	750
Retained earnings	400
Total liabilities and shareholders’ equity	$ 1,900

Net sales	$ 4,600
Interest expense	40
Income tax expense	100
Net income	160

Required:

Calculate the current ratio.

Note: Round your answer to 2 decimal places.

Calculate the acid-test ratio.

Note: Round your answer to 3 decimal places.

Calculate the debt to equity ratio.

Note: Round your answer to 2 decimal places.

Calculate the times interest earned ratio.

Note: Round your answer to 1 decimal place.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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