Financial statement data of Mennonite Industries, Inc., include the following items:

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1. Compute Mennonite's current ratio, debt ratio, and earnings per share.
2. Compute each of the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.

a. Purchased merchandise of \(\$ 26,000\) on account, debiting Inventory.

b. Paid off long-term liabilities, \(\$ 31,000\).

c. Declared, but did not pay, a \(\$ 22,000\) cash dividend on common stock.

d. Borrowed \(\$ 85,000\) on a long-term note payable.

e. Sold short-term investments for \(\$ 18,000\) (cost, \(\$ 11,000\) ); assume no income tax on the gain.

f. Issued 5,000 shares of common stock, receiving cash of \(\$ 120,000\).
g. Received cash on account, \(\$ 19,000\).
h. Paid short-term notes payable, \(\$ 32,000\).
Use the following format for your answer:

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Cash.......... Short-term investments. Accounts receivable, net. Inventories. Prepaid expenses. $ 22,000 19,000 83,000 141,000 8,000 Total assets 657,000 Short-term notes payable. 49,000 Accounts payable...... 103,000 Accrued liabilities........ 38,000 Long-term notes payable....... 160,000 Other long-term liabilities......... 31,000 Net income....... 71,000 Number of common shares outstanding............ 40,000