Financial statement data of Style TravelerStyle Traveler magazine include the following items (dollars in thousands):

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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, $60,000
	Borrowed $170,000 on a long-term note payable
c.	Issued 7,500 shares of common stock, receiving cash of $ 136 comma 000$136,000
d.	Received cash on account, $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
	1.39	0.60	$1.35

Requirement 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction

separately.

a. Purchased inventory on account,$60,000

b. Borrowed $170,000 on along-term note payable c. Issued 7,500 shares of common stock, receiving cash of $136,000

d. Received cash on account,$20,000.

(Round your answers to two decimal places.)

Transaction	Current Ratio	Debt Ratio	Earnings per Share
a.

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