Financial statement data of

Style TravelerStyle Traveler

magazine include the following items (dollars in thousands):

LOADING...

(Click the icon to view the financial statement data.)

Requirements

1.

Compute

Style TravelerStyle Traveler's

current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

2.

Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction

separately.

a.	Purchased inventory on account, $ 60 comma 000$60,000
b.	Borrowed $ 170 comma 000$170,000 on a long-term note payable
c.	Issued 7 comma 5007,500 shares of common stock, receiving cash of $ 136 comma 000$136,000
d.	Received cash on account, $ 20 comma 000$20,000

Requirement 1. Compute

Style TravelerStyle Traveler's

current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

	Current Ratio	Debt Ratio	Earnings per Share
DATA TABLE Cash. . . . . . . . . . . . . . . . . . . . . . . . . . $25,000 Accounts receivable, net. . . . . . . . . . . . $83,500 Inventories. . . . . . . . . . . . . . . . . . . . . . $169,500 Total assets. . . . . . . . . . . . . . . . . . . . . $680,000 Short-term notes payable. . . . . . . . . . $51,500 Accounts payable. . . . . . . . . . . . . . . . . $105,000 Accrued liabilities. . . . . . . . . . . . . . . . . $43,500 Long-term liabilities. . . . . . . . . . . . . . $208,000 Net income. . . . . . . . . . . . . . . . . . . . . . $81,000 Common shares outstanding. . . . . . . . . 60,000