P18-3A Financial statement data of Willsboro Farms, Inc., include the following items: Cash Short-term investments. Accounts receivable, net. Inventories... Prepaid expenses Total assets. Short-term notes payable. 18 Required $ 22.000 19,000 97,000 141.000 Accounts payable. Accrued liabilities.. Long-term notes payable. $ 94,000 38.000 160.000 Other long-term liabilities. 31,000 8.000 Net income... 71,000 657.000 49.000 Number of common shares outstanding 23,000 1. Compute Willsboro's current ratio, debt ratio, and earnings per share. 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately

a. Purchased merchandise costing $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. Use the following format for your answer: Requirement 1: Current Ratio Debt Ratio Earnings Per Share Transaction Requirement 2: (letter) Current Ratio Debt Ratio Earnings Per Share