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Financial statement data of Backroad Travel magazine include the following items (dollars in thousands): (Click the icon to view the financial statement data.) Data table
Financial statement data of Backroad Travel magazine include the following items (dollars in thousands): (Click the icon to view the financial statement data.) Data table Requirements 1. Compute Backroad Travel's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal plac a. Purchased inventory on account, $60,000 b. Borrowed $170,000 on a long-term note payable c. Issued 5,750 shares of common stock, receiving cash of $136,000 d. Received cash on account, $22,000 Requirement 1. Compute Backroad Travel's current ratio, debt ratio, and earnings per share. Round all ratios to two Requirement 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each t a. Purchased inventory on account, $60,000 (Round your answers to two decimal places.)
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