Financual statement data of Highland Engineering Limited include the following items:

1. Compute Highland's current ratio, debt ratio, and earnings per share. Use dollar and share amounts in thousands except for EPS. 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Borrowed $28,500 on a long-term note payable b. Issued 10,500 common shares, receiving cash of $111.000 C. Paid short-term notes payable, $51,000 d. Purchased merchandise of $46,000 on account, debiting Inventory e. Received cash on account, $5,600 Cash $ $ 142,000 Short-term investments Accounts receivable, net 45,500 Accounts payable. 22,000 Accrued liabilities 100,500 Long-term notes payable .... 273,500 Other long-term liabilities. 15,000 Net income 927,000 Number of common 71,500 shares outstanding 50,500 145,500 78,500 Inventories 102,000 Prepaid expenses Total assets. Short-term notes payable 23,500