148 SECTION 1 The Role of Accounting as an Information System The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. E3-16 Calculating ratios LOJ-8 HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands Assets $ 200 150 200 350 1,000 $1,900 Cash Short-term investments Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and Shareholders' Equity Current abilities Long-term liabilities Pald-in capital Retained earnings Total abilities and shareholders' equity $ 400 350 750 400 $1,900 The company's 2021 income statement reported the following amounts (S in thousands): Net sales Interest expense Income tax expense Net income $4,600 40 100 160 Required: Determine the following ratios for 2021: 1. Current ratio 2. Acid-test ratio 3. Debt to equity ratio 4. Times interest earned ratio E 3-17 Calculating ratios; Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown next Best Buy Co. Inc. Balance Sheet At January 23, 2017 Assets $ 2240 Cash Cash equivalente Short-term investments Accounts receivabile net vendary Other current assets Total current assets Long term asset Total assets 1,347 4.364 354 10,516 3.340 Liabilities and Shareholders' Equity Current bien Accounts payable Other current abilities Total current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 4.984 2.138 7.122 2.025 4.709 $13.856 CHAPTER 3 The Balance Sheet and Financial Disclosures Best Buy Co., Inc. Income Statement For the Year Ended January 28, 2017 is in millions) Revenues Costs and expenses Operating income Other Income (expense)" Income before income taxes Income tax expense Net Income $39,403 37,549 1,854 (38) 1,816 609 $ 1.207 "Includes $72 of interest expense. Liquidity and solvency ratios for the industry are as follows: Industry Average Current ratio 1.43 Acid-test ratio 1.15 Debt to equity 0.68 Times interest earned 8.25 times Required: 1. Determine the following ratios for Best Buy for its fiscal year ended Janury 28, 2017 a. Current ratio b. Acid-test ratio c. Debt to equity ratio d. Times interest earned ratio 2. Using the ratios from requirement I, assess Best Buy's liquidity and solvency relative to its industry. The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable sec the following