Financial statement data of Junior Sports Shop include the following items: Requirements 1. Compute Junior Sports Shops

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Financial statement data of Junior Sports Shop include the following items:

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Requirements 

1. Compute Junior Sports Shop’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. Received cash on account, $28,000.

b. Paid short-term notes payable, $5,000.

c. Borrowed $26,000 on a long-term note payable.

d. Issued 8,000 shares of common stock, receiving cash of $80,000.

e. Purchased merchandise inventory of $9,600 on account.

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Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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