Financial statement data of Greatland Engineering include the following? items:

Requirement 1: Compute Greatland's current? ratio, debt? ratio, and earnings per share. Round all ratios to two decimal places. Start by determining the formula for each? ratio, beginning with the current? ratio, followed by the debt? ratio, and then earnings per share.

Requirement 2: Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.

a. Borrowed $130,000 on a? long-term note payable.

b. On January? 1, Issued 40,000 shares of common? stock, receiving cash of $365,000.

c. Paid? short-term notes? payable, $31,000.

d. Purchased merchandise of $42,000 on? account, debiting Inventory.

e. Received cash on? account, $17,000.

Cash 25,000 Accounts payable 103,000 Short-term investments 39,000 Accrued liabilities 31,000 161,000 86,000 Long-term notes payable Accounts receivable, net Inventories 148,000 other long-term liabilities 32,000 Prepaid expenses 10,000 Net income 3,000 675,000 Number of Total assets. common 42,000 shares outstanding Short-term notes payable 46,000