Financial statement data of Style Traveler, Inc. include the following items:

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Read the requirements.

Requirements

Requirement $1.$ Compute Style Traveler, Inc.$\text{'}$s current ratio, debt ratio, and earnings per share

Begin by selecting the formula for each ratio.

$\backslash$table$[[$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 cc$]]$

Compute Style Traveler, Inc.$\text{'}$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 merchandise inventopy of $$47,000$ on account.

b$.$ Borrowed $$120,000$ on a long$-$term note payable.

c$.$ Issued $10,000$ shares of common stock, receiving cash of $$102,000.$

d$.$ Received cash on account, $$10,000.$

Current Ratio Debt Ratio $|)$ Earnings per Share

Requirement $2.$ Compute the three ratios after evaluating the effects of each transaction. Cons

a$.$ Purchased merchandise inventory of $$47,000$ on account.

$\backslash$table$[[$Current Ratio,Debt Ratio,Earnings per Share$],[,,]]$

b$.$ Borrowed $$120,000$ on a long$-$term note payable.

Current Ratio $\frac{?}{\text{b}\text{a}\text{r}}\frac{(I{)}^{\text{D}\text{e}\text{b}\text{t}\text{R}\text{a}\text{t}\text{i}\text{o}}}{b}ar(I{)}^{\text{E}\text{a}\text{r}\text{n}\text{i}\text{n}\text{g}\text{s}\text{p}\text{e}\text{r}\text{S}\text{h}\text{a}\text{r}\text{e}}$

c$.$ Issued $10,000$ shares of common stock, receiving cash of $$102,000.$

$\backslash$table$[[$Current Ratio,Debt Ratio,Earnings per Share$],[$d$.$ Received cash on account, $$10,000.],[$Current Ratio,Debt Ratio,Earnings per Share$],[\mathrm{.}28500,,]]$

Data

$\backslash$table$[[$Cash$,$$$,24,000],[$Accounts Receivable, Net,,$78,000],[$Merchandise Inventory,,$183,000],[$Total Assets,,$639,000],[$Accounts Payable,,$99,000],[$Accrued Liabilities,,$37,000],[$Short$-$term Notes Payable,,$48,000],[$Long$-$term Liabilities,,$220,000],[$Net Income,,$68,000],[$Common Shares Outstanding,,$0$ shares$]]$