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 | $ | 240 | |
| Short-term investments | 190 | ||
| Accounts receivable | 240 | ||
| Inventory | 330 | ||
| Property, plant, and equipment (net) | 1,400 | ||
| Total assets | $ | 2,400 | |
| Liabilities and Shareholders Equity | |||
| Current liabilities | $ | 440 | |
| Long-term liabilities | 390 | ||
| Paid-in capital | 950 | ||
| Retained earnings | 620 | ||
| Total liabilities and shareholders equity | $ | 2,400 | |
The companys 2021 income statement reported the following amounts ($ in thousands):
| Net sales | $ | 5,000 | |
| Interest expense | 40 | ||
| Income tax expense | 140 | ||
| Net income | 200 | ||
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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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
