The 2013 balance sheet for Hallbrook Industries, Inc., is shown below.
The company’s 2013 income statement reported the following amounts ($ in 000s):
Required:
Determine the following ratios for 2013:
1. Current ratio
2. Acid-test ratio
3. Debt to equity ratio
4. Times interest earned ratio
Answer:
Current ratio [$200 + 150 + 200 + 350] ÷ $400 = 2.25