Financial statement data of MKR Dealer Supplies Ltd. include the following items: Effects of business transactions on selected ratios 1. Earnings per share, $2.70 Cash Accounts receivable, net Inventories Prepaid expenses - Total assets Short-term notes payable Accounts payable Accrued liabilities Long-term liabilities Net income Number of common shares outstanding $ 68,000 97,500 129,000 6,000 625,000 39,000 109,500 27,000 204,000 108,000 40,000 shares Required 1. Compute MKR Dealer Supplies Ltd.'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 $43,000 on account, debiting Inventory. b. Paid long-term liabilities, $40,000. c. Declared, but did not pay, a $60,000 cash dividend on common shares. d. Borrowed $50,000 on a long-term note payable. e. Issued 10,000 common shares at the beginning of the year, receiving cash of $140,000. f. Received cash on account, $29,000. 8. Paid short-term notes payable, $25,000. Set up a table in the following format for your answers: Transaction Current Ratio Debt Ratio Earnings per Share