Financial statement data of Off Road Traveler Magazine include the following items:

Cash $22,000

Accounts Receivable, Net $78,000

Merchandise Inventory $187,000

Total Assets $640,000

Accounts Payable $102,000

Accrued Liabilities $38,000

Short-term Notes Payable $49,000

Long-term Liabilities $221,000

Net Income $74,000

Common Shares Outstanding $60,000

Current ratio = Total current assets / Total current liabilities

Debt ratio = Total liabilities / Total assets

Earnings per Share = (Net income - Preferred dividends)/Weighted average number of common shares outstanding

1. Now, computeOff Road Traveler's current ratio, debt ratio, and earnings per share. (Round all ratios to two decimal places)

2. Compute the current ratio, debt ratio, and earnings per share after evaluating the effect of each transaction that follows. Consider each transaction separately.

	a. Purchased merchandise inventory of $49,000 on account.
	b. Borrowed $121,000 on a long-term note payable.
	c. Issued $6,000 shares of common stock, receiving cash of $107,000.
	d. Received cash on account, $8,000.