Day 7 1)The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC.Balance SheetDecember 31, 2021($ in thousands)AssetsCash$310 Short-term investments 260 Accounts receivable 310 Inventory 320 Property, plant, and equipment (net) 2,100 Total assets$3,300 Liabilities and Shareholders’ Equity Current liabilities$510 Long-term liabilities 460 Paid-in capital 1,300 Retained earnings 1,030 Total liabilities and shareholders’ equity$3,300 The company’s 2021 income statement reported the following amounts ($ in thousands): Net sales$5,700 Interest expense 100 Income tax expense 100 Net income 270 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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Answered: Day 7 1) The 2021 balance sheet for…

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP: FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industriess 2017 and 2018 balance sheets (in...

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Day 7 1)

The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.

HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2021
($ in thousands)
Assets
Cash	$	310
Short-term investments		260
Accounts receivable		310
Inventory		320
Property, plant, and equipment (net)		2,100
Total assets	$	3,300
Liabilities and Shareholders’ Equity
Current liabilities	$	510
Long-term liabilities		460
Paid-in capital		1,300
Retained earnings		1,030
Total liabilities and shareholders’ equity	$	3,300

The company’s 2021 income statement reported the following amounts ($ in thousands):


Net sales	$	5,700
Interest expense		100
Income tax expense		100
Net income		270

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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