The 2018 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK INDUSTRIES, INC. Balance Sheet December
Question:
The 2018 balance sheet for Hallbrook Industries, Inc., is shown below.
HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2018
($ in thousands)
Assets
Cash .............................................................................$ 200
Short-term investments ....................................................... 150
Accounts receivable ........................................................... 200
Inventories ..................................................................... 350
Property, plant, and equipment (net) ........................................1,000
Total assets ..................................................................... $ 1,900
Liabilities and Shareholders' Equity
Current liabilities ..............................................................$ 400
Long-term liabilities ......................................................... 350
Paid-in capital ................................................................. 750
Retained earnings ............................................................. 400
Total liabilities and shareholders' equity ................................... $ 1,900
The company's 2018 income statement reported the following amounts ($ in thousands):
Net sales ...................................................... $4,600
Interest expense ............................................. 40
Income tax expense .........................................100
Net income ...................................................160
Required:
Determine the following ratios for 2018:
1. Current ratio
2. Acid-test ratio
3. Debt to equity ratio
4. Times interest earned ratio
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Current ratio 200 150 200 350 400 225 ...View the full answer
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
