Financial statement data of American Traveler Magazine include the following items:

Cash . . . . . . . . . . . . . . . . . . . . . . $ 23,000

Accounts receivable, net . . . . . . . 79,000

Inventories . . . . . . . . . . . . . . . . . 184,000

Total assets . . . . . . . . . . . . . . . . . 634,000

Accounts payable . . . . . . . . . . . . 104,000

Accrued liabilities . . . . . . . . . . . . 40,000

Short-term notes payable . . . . . . 47,000

Long-term liabilities . . . . . . . . . . 221,000

Net income . . . . . . . . . . . . . . . . . 74,000

Common shares outstanding . . . 60,000

Requirements

1. Compute American Traveler's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer:

2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
(a) Purchased inventory of $49,000 on account.
(b) Borrowed $122,000 on a long-term note payable.
(c) Issued 6,000 shares of common stock, receiving cash of $103,000.
(d) Received cash on account,$3,000.

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Debt Ratio Earnings per Share Current Ratio