Financial statement data of Barb Wired Fencing, Inc., include the following items:

Requirements 1. Compute Barb Wired Fencing’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 transaction that follows.

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

b. Issued 2,000 shares of common stock, receiving cash of $80,000.

c. Borrowed $80,000 on a long-term note payable.

d. Received cash on account, $22,000.

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Cash... Short-Term Investments. Accounts Receivable, Net.. Inventory.... Prepaid Expenses.. Total Assets. Short-Term Notes Payable. Accounts Payable.... Accrued Liabilities. $ 17,000 22,000 103,000 119,000 10,000 660,000 45,000 105,000 40,000 Long-Term Notes Payable... 158,000 Other Long-Term Liabilities 33.000 Net Income. 75,000 Number of Common Shares Outstanding 35,000