Financial statement data of New Brunswick Fence, Inc., include:

Cash ......................................................................... $ 24,000

Short-Term Investments ...................................................... 30,000

Accounts Receivable. Net ................................................... 103,000

Inventory .................................................................... 120,000

Prepaid Expenses ............................................................. 7,000

Total Assets ................................................................. 662,000

Short-Term Notes Payable .................................................. 48,000

Accounts Payable .......................................................... 102,000

Accrued Liabilities ........................................................... 33,000

Long-Term Notes Payable ................................................. 158,000

Other Long-Term Liabilities ................................................... 32,000

Net Income ..................................................................... 73,000

Number of Common Shares Outstanding .................................... 39,000

Requirements

1. Compute New Brunswick Fence, Inc.'s current ratio, debt ratio, and earnings per share. Assume that the company had no preferred stock outstanding. Round all ratios to two decimal places.

2. Compute each of the same three ratios after evaluating the effect of each independent transaction that follows:

a. Purchased merchandise of $38,000 on account, debiting Inventory

b. Issued 1,000 shares of common stock, receiving cash of $85,000; use total shares outstanding at year-end instead of average shares outstanding

c. Borrowed $50,000 on a long-term note payable

d. Received cash on account, $9,000?