Question
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets Cash $
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.
| HALLBROOK INDUSTRIES, INC. | |||
| Balance Sheet | |||
| December 31, 2021 | |||
| ($ in thousands) | |||
| Assets | |||
| Cash | $ | 330 | |
| Short-term investments | 280 | ||
| Accounts receivable | 330 | ||
| Inventory | 360 | ||
| Property, plant, and equipment (net) | 2,300 | ||
| Total assets | $ | 3,600 | |
| Liabilities and Shareholders Equity | |||
| Current liabilities | $ | 530 | |
| Long-term liabilities | 480 | ||
| Paid-in capital | 1,400 | ||
| Retained earnings | 1,190 | ||
| Total liabilities and shareholders equity | $ | 3,600 | |
The companys 2021 income statement reported the following amounts ($ in thousands):
| Net sales | $ | 5,900 | |
| Interest expense | 50 | ||
| Income tax expense | 120 | ||
| Net income | 290 | ||
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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The Information Audit A Practical Guide
Authors: Susan Henczel, Sue Henczel
1st Edition
3598243677, 978-3598243677
