Financial statement data of Style Traveler Magazine include the following items:

$($Click the icon to view the data.$)$

Read the requirements.

Requirement $1.$ Compute Style Traveler's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

Begin by selecting the formula for each ratio.

Current ratio $=$ Total current assets $$ Total current liabilities

Debt ratio $=$ Total liabilities $$ Total assets

Earnings per Share $=(Income+$ Interest expense $)$ Average total assets

Now, compute Style Traveler's current ratio, debt ratio, and earnings per share. $($Round all ratios to two decimal places, X$.$XX$.)$

Requirement $2.$ Compute the three ratios after evaluating the effects of each transaction. Consider each transaction separately. $($Round all ratios to two decimal places, $x.xx.$

i$.($Click on the icon to view the transactions.$)$

Data table

a$.$ Purchased merchandise inventory of $$49,000$ on account.

b$.$ Borrowed $$127,000$ on a long$-$term note payable.

c$.$ Issued $2,000$ shares of common stock, receiving cash of $$107,000.$

d$.$ Received cash on account, $$5,000.$