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Financial statement data of Westland Engineering include the following items: (Click the icon to view the financial statement data.) Requirement 1. Calculate Westland's current ratio,
Financial statement data of Westland Engineering include the following items: (Click the icon to view the financial statement data.) Requirement 1. Calculate Westland's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. Start by determining the formula for each ratio, beginning with the current ratio, followed by the debt ratio, and then earnings per share. 1. Calculate Westland's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. 2. Calculate the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately a. Borrowed $120,000 on a long-term note payable b. On January 1, Issued 14,000 shares of common stock, receiving cash of $366,000 C. Paid off short-term notes payable, $26,000 d. Purchased $48.000 of merchandise on account, debiting Inventory 8. Received cash on account, $25,000 Current assels + Current liabilities = Current ratio Total liabilities + Total assets Debt ratio ( ) + = Earnings par share Now compute Westland's current ratio, debt ratio, and earnings per share. (Round all ratios to two decimal places.) Current ratio Debt ratio Earnings per share Print Done Requirement 2. Calculate the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. (Round all ratios to two decimal places Current ratio Debt ratio Earnings per share Data Table a. b. c. Cash $ $ 105,000 30,000 d. 167.000 Short-term investments Accounts receivable, net Inventories Prepaid expenses Total assets Short-term notes payable 23,000 Accounts payable 37,000 Accrued liabilities 84,000 Long-term noles payable 148,000 Other long-term liabilities 2,000 Net income 674,000 Number of common 43,000 shares outstanding 33,000 92,000 Choose from any list or enter any number in the input fields and then continue to the next 50,000
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