Question
The 2018 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2018 ($ in 000s) Assets Cash $
The 2018 balance sheet for Hallbrook Industries, Inc., is shown below.
| HALLBROOK INDUSTRIES, INC. | |||
| Balance Sheet | |||
| December 31, 2018 | |||
| ($ in 000s) | |||
| Assets | |||
| Cash | $ | 370 | |
| Short-term investments | 320 | ||
| Accounts receivable | 370 | ||
| Inventories | 340 | ||
| Property, plant, and equipment (net) | 2,700 | ||
| Total assets | $ | 4,100 | |
| Liabilities and Shareholders Equity | |||
| Current liabilities | $ | 570 | |
| Long-term liabilities | 520 | ||
| Paid-in capital | 1,600 | ||
| Retained earnings | 1,410 | ||
| Total liabilities and shareholders equity | $ | 4,100 | |
The companys 2018 income statement reported the following amounts ($ in 000s):
| Net sales | $ | 6,300 | |
| Interest expense | 50 | ||
| Income tax expense | 160 | ||
| Net income | 330 | ||
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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Auditing Assurance And Risk
Authors: W. Robert Knechel, Steve Salterio, Brian Ballou
3rd Edition
0324313187, 9780324313185
