The 2013 balance sheet for Hallbrook Industries, Inc. is shown below.   HALLBROOK INDUSTRIES, INC.   Balance Sheet   December 31, 2013   ($ in 000s)   Assets Cash $200 Short-term investments 150 Accounts receivable 200 Inventories 350 Property, plant, and equipment (net) 1,000 Total asets $1,900 Liabilities and Shareholders' Equity Current liabilities $40 Long-term liabilities 350 Paid-in capital 750 Retained earnings 400 Total liabilities and shareholders' equity $1,900 The company's 2013 income statement reported the following amounts ($ in 000s):   Net sales $4,600 Interest expense 40 Income tax 100 Net income 160 Required:   Determine the acid-test ratio for 2013. (Round to two decimals.)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...
icon
Related questions
Question

The 2013 balance sheet for Hallbrook Industries, Inc. is shown below.

 

HALLBROOK INDUSTRIES, INC.

 

Balance Sheet

 

December 31, 2013

 

($ in 000s)

 

Assets

Cash $200

Short-term investments 150

Accounts receivable 200

Inventories 350

Property, plant, and equipment (net) 1,000

Total asets $1,900

Liabilities and Shareholders' Equity

Current liabilities $40

Long-term liabilities 350

Paid-in capital 750

Retained earnings 400

Total liabilities and shareholders' equity $1,900

The company's 2013 income statement reported the following amounts ($ in 000s):

 

Net sales $4,600

Interest expense 40

Income tax 100

Net income 160

Required:

 

Determine the acid-test ratio for 2013. (Round to two decimals.)

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning