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

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: (The expected format for rounding your final answers is presented in each row of the table.)

Explanation:

1. Current ratio = [$200 + 150 + 200 + 350] ÷ $400 = 2.25

2. Acid-test ratio = [$200 + 150 + 200] ÷ $400 = 1.375

3. Debt to equity ratio = [$400 + 350] ÷ [$750 + 400] = 0.65

4. Times interest earned ratio = [$160 + 40 + 100] ÷ $40 = 7.5 times