Financial statement data of Road Trip magazine include the following information (dollars in thousands):

Cash ............................................................................................................... $ 23,500

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

Inventories .................................................................................................... $197,800

Total assets ................................................................................................... $630,000

Short-term notes payable .............................................................................. $ 50,500

Accounts payable ......................................................................................... $100,000

Accrued liabilities ......................................................................................... $ 59,500

Long-term liabilities .................................................................................... $193,200

Net income ................................................................................................... $ 78,300

Common shares outstanding .......................................................................... 58,000

Requirements

1. Compute Road Trip 's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately .

a. Purchased inventory on account, $48,000

b. Borrowed $210,000 on a long-term note payable

c. Issued 7,250 shares of common stock, receiving cash of $176,400

d. Received cash on account, $19,500