The 2016 balance sheet for Hallbrook Industries, Inc., is shown below. HALLBROOK

Question

The 2016 balance sheet for Hallbrook Industries, Inc., is shown below.

HALLBROOK INDUSTRIES, INC. Balance Sheet December 31, 2016 ($ in 000s)   Assets   Cash $ 260   Short-term investments 210   Accounts receivable 260   Inventories 370   Property, plant, and equipment (net) 1,600      Total assets $ 2,700 Liabilities and Shareholders’ Equity   Current liabilities $ 460   Long-term liabilities 410   Paid-in capital 1,050   Retained earnings 780      Total liabilities and shareholders’ equity $ 2,700

Explanation / Answer

      = 260+210+260+370/460

      =1100/460

     2.39

2. Acid test ratio= Current assets except inventory/ Current liabilities

                                 =260+210+260/460

                                  =730/460

                                   =1.59

3.Debt to equity ratio.=Total Liability/ Total Equity

     =460+410/1,050+780

     =870/1,830

      =0.47

                                                                    =220+160+50/50

                                                                     =430/50

                                                                      =8.6

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