The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 330 Short-term investments 280 Accounts receivable 330 Inventory 360 Property, plant, and equipment (net) 2,300 Total assets $ 3,600 Liabilities and Shareholders’ Equity Current liabilities $ 530 Long-term liabilities 480 Paid-in capital 1,400 Retained earnings 1,190 Total liabilities and shareholders’ equity $ 3,600 The company’s 2024 income statement reported the following amounts ($ in thousands): Net sales $ 5,900 Interest expense 50 Income tax expense 120 Net income 290 Required: Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned ratio. Note: Round your answer to 1 decimal place.

The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below. HALLBROOK INDUSTRIES, INCORPORATED Balance Sheet December 31, 2024 ($ in thousands) Assets Cash $ 330 Short-term investments 280 Accounts receivable 330 Inventory 360 Property, plant, and equipment (net) 2,300 Total assets $ 3,600 Liabilities and Shareholders’ Equity Current liabilities $ 530 Long-term liabilities 480 Paid-in capital 1,400 Retained earnings 1,190 Total liabilities and shareholders’ equity $ 3,600 The company’s 2024 income statement reported the following amounts ($ in thousands): Net sales $ 5,900 Interest expense 50 Income tax expense 120 Net income 290 Required: Calculate the current ratio. Note: Round your answer to 2 decimal places. Calculate the acid-test ratio. Note: Round your answer to 3 decimal places. Calculate the debt to equity ratio. Note: Round your answer to 2 decimal places. Calculate the times interest earned ratio. Note: Round your answer to 1 decimal place.

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Description: The 2024 balance sheet for Hallbrook Industries, Incorporated, is shown below.HALLBROOK INDUSTRIES, INCORPORATEDBalance SheetDecember 31, 2024($ in thousands)Assets Cash$ 330Short-term investments280Accounts receivable330Inventory360Property, plant,

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 103.2C

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HALLBROOK INDUSTRIES, INCORPORATED
Balance Sheet
December 31, 2024
($ in thousands)
Assets
Cash	$ 330
Short-term investments	280
Accounts receivable	330
Inventory	360
Property, plant, and equipment (net)	2,300
Total assets	$ 3,600
Liabilities and Shareholders’ Equity
Current liabilities	$ 530
Long-term liabilities	480
Paid-in capital	1,400
Retained earnings	1,190
Total liabilities and shareholders’ equity	$ 3,600

Net sales	$ 5,900
Interest expense	50
Income tax expense	120
Net income	290

Required:

Calculate the current ratio.
Note: Round your answer to 2 decimal places.
Calculate the acid-test ratio.
Note: Round your answer to 3 decimal places.
Calculate the debt to equity ratio.
Note: Round your answer to 2 decimal places.
Calculate the times interest earned ratio.
Note: Round your answer to 1 decimal place.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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