The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets 280 Cash Short-term investments Accounts receivable Inventory Property, plant, and equipment (net) 230 280 310 1,800 $ 2,900 Total assets Liabilities and Shareholders' Equity 2$ 480 Current liabilities Long-term liabilities Paid-in capital Retained earnings Total liabilities and shareholders' equity 430 1,150 840 $ 2,900 The company's 2021 income statement reported the following amounts ($ in thousands): $5,400 70 Net sales Interest expense Income tax expense Net income 180 240 Required: 1. Calculate the current ratio. (Round your answer to 2 decimal places.) 2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.) 3. Colculate the debt to equity ratio. (Round your answer to 2 decimal places.)
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 ($ in thousands) Assets 280 Cash Short-term investments Accounts receivable Inventory Property, plant, and equipment (net) 230 280 310 1,800 $ 2,900 Total assets Liabilities and Shareholders' Equity 2$ 480 Current liabilities Long-term liabilities Paid-in capital Retained earnings Total liabilities and shareholders' equity 430 1,150 840 $ 2,900 The company's 2021 income statement reported the following amounts ($ in thousands): $5,400 70 Net sales Interest expense Income tax expense Net income 180 240 Required: 1. Calculate the current ratio. (Round your answer to 2 decimal places.) 2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.) 3. Colculate the debt to equity ratio. (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.
HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2021
($ in thousands)
Assets
280
230
Cash
Short-term investmentS
Accounts receivable
Inventory
Property, plant, and equipment (net)
280
310
1,800
$ 2,900
Total assets
Liabilities and Shareholders' Equity
$4
480
Current liabilities
Long-term liabilities
Paid-in capital
Retained earnings
430
1,150
840
Total liabilities and shareholders' equity
$ 2,900
The company's 2021 income statement reported the following amounts ($ in thousands):
$5,400
70
Net sales
Interest expense
Income tax expense
Net income
180
240
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.)
1. Current ratio
2. Acid-test ratio
3. Debt to equity ratio
4.
Times Interest earned ratio
times
Expert Solution
Step 1
Ratio analysis means where different ratio of various years of years companies has been compared and results are interpreted to make effective decision regarding future course of action.
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