The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet...
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The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 (S in thousands) Assets Cash Short-term investments 320 270 Accounts receivable Inventory Property, plant, and equipment (net) 320 390 2,200 Total assets $ 3,500 Liabilities and Shareholders' Equity Current liabilities 520 Long-term liabilities Paid-in capital Retained earnings 470 1,350 1,160 Total liabilities and shareholders' equity $ 3,500 The company's 2021 income statement reported the following amounts ($ in thousands): Net sales Interest expense $5,800 60 Income tax expense 110 Net income 280 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 The 2021 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2021 (S in thousands) Assets Cash Short-term investments 320 270 Accounts receivable Inventory Property, plant, and equipment (net) 320 390 2,200 Total assets $ 3,500 Liabilities and Shareholders' Equity Current liabilities 520 Long-term liabilities Paid-in capital Retained earnings 470 1,350 1,160 Total liabilities and shareholders' equity $ 3,500 The company's 2021 income statement reported the following amounts ($ in thousands): Net sales Interest expense $5,800 60 Income tax expense 110 Net income 280 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
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Solution 1 Calculation of Current Ratio Currents Assets Amount in thousands Cash 320 Short term Inve... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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