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