Financial statement data of Extra Travel magazine include the following items (dollars in thousands):

Requirements

Compute Extra Travel's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.

a. Purchased inventory on account, $75,000

b. Borrowed $264,000 on a long-term note payable

c. Issued 7,250 shares of common stock, receiving cash of $210,000

d. Received cash on account

Cash. . . . . $24,500

Accounts receivable, net. . . . . . .$83,000

Inventories. . . . . . . $180,500

Total assets. . . . . . . . .$660,000

Short-term notes payable. . . . . . . .$49,500

Accounts payable. . . . . . . . . . . . . $106,000

Accrued liabilities. . . . . . . . . . . . . $44,500

Long-term liabilities. . . . . . . . . . $182,800

Net income. . . . . . . . . . . . . . .$78,300

Common shares outstanding. . . . . . 58,000