Solution-Determine the current ratio and times interest

Determine the current ratio and times interest earned ratio

Reference no: EM131872564

Problem - The 2013 balance sheet for Hallbrook Industries, Inc., is shown below.

HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2013 ($ in 000s)
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 2013 income statement reported the following amounts ($ in 000s):

Net sales	$4,600
Interest expense	40
Income tax expense	100
Net income	160

Required: Determine the following ratios for 2013:

1. Current ratio

2. Acid-test ratio

3. Debt to equity ratio

4. Times interest earned ratio

Reference no: EM131872564

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Determine the current ratio and times interest earned ratio

Reference no: EM131872564

Reference no: EM131872564

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