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Exercise 3-16 (Static) Calculating ratios [LO3-8] The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021
Exercise 3-16 (Static) Calculating ratios [LO3-8]
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.
| HALLBROOK INDUSTRIES, INC. | |||
| Balance Sheet | |||
| December 31, 2021 | |||
| ($ 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 companys 2021 income statement reported the following amounts ($ in thousands):
| Net sales | $ | 4,600 | |
| Interest expense | 40 | ||
| Income tax expense | 100 | ||
| Net income | 160 | ||
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.) 4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)
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