Financial statement data of Modern Traveler magazine include the following items (dollars in thousands): (Click the icon to view the financial statement data.) Requirements 1. Compute Modern Traveler'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. Purchased inventory on account, $75,000 2. a. b. C. d. Issued 6,250 shares of common stock, receiving cash of $210,000 Received cash on account, $20,500 Borrowed $264,000 on a long-term note payable Data table Cash... $ 24,500 Accounts receivable, net Inventories... $ 83,000 $ 180,500 Total assets... $ 660,000 Short-term notes payable.. $ 49,500 $ 106,000 44,500 $ 182,800 $ Common shares outstanding 72,000 50,000 Requirement 1. Compute Modern Traveler's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. Current Ratio Debt Ratio Earnings per Share 1.44 0.58 1.17 Requirement 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Purchased inventory on account, $75,000 (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share Accounts payable... Accrued liabilities.. Long-term liabilities.. Net income.... 1.32 0.62 b. Borrowed $264,000 on a long-term note payable. (Round your answers to two decimal places.) Current Ratio 2.76 Debt Ratio Earnings per Share 0.70 c. Issued 6,250 shares of common stock, receiving cash of $210,000. (Round your answers to two decimal places.) Current Ratio 2.49 Debt Ratio 0.44 Earnings per Share 1.04 d. Received cash on account, $20,500. (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share Print Done