The 2016 balance sheet for Hallbrook INDUSTRIES, INC. is shown below :

Balance Sheet

December 31, 2016

($ in 000s)

Assets
Cash $370
Short term investments $320
Accounts receivable $370
Property, plant, and equipment (net) 2,700
Total assets $4,100
Liabilities and Shareholders' Equity
Current liabilities $ 570
Long term liabilities 520
Paid-in capital 1,600
Retained earnings 1,410
Total liabilities and shareholders' equity $4,100
The company's 2016 income statement reported the following amounts ($ in 000s)

Net sales 6,300
Interest expense 50
Income tax expense 160
Net income 330
1. Calculate the current ratio. (Round your answer to 2 decimal places)

Current Ratio 2. Calculate the acid-test ratio. (Round your answer to 2 decimal places.)

Acid-test ratio
3. Calculate the debt-equity ratio

debt-equity ratio
4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)

times interest earned ratio _times

1. Current Asset Ratio = 1.86 : 1

 2. Acid Test Ratio= 1.86 : 1

 3. Debt to Equity ratio = 0.36 : 1

 4. Times interest earned = 10.8

Explanation:

1. Current Asset Ratio = Current Asset    

                                       Current Liabilities

                                      =  $370,000 + $370,000 + $320,000

                                                          $570,000

                                    =  $1,060,000

                                        $570,000

                                    = 1.86

Current asset includes cash, short term investment and account receivable.

2.    Acid Test Ratio  = Current Asset - Inventory

                                      Current Liabilities

                                   = $1,060,000 - $0

                                      $570,000

                                    = 1.86

No inventory value is given, so the value is deemed zero.

3.       Debt to Equity   =   Total liabilities

                                          Shareholder`s equity

                                     =   $570,000+ $520,000

                                          $1,600,000 + $1,410,000

                                    =  $1,090,000

                                        $3,010,000

Both current and long term liabilities are taken as debt since the question does not provide information in regard of specific composition of current liabilities.

                                     = 0.36

4.      Times interest earned   = Income before Interest and Tax

                                                     Interest payable

                                                    =   $330,000+ $50,000 + $160,000

                                                                     $50,000

                                                    = 10.8

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi