Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ANSWER ASAP Financial statement data of Off Road Travel magazine include the following items (dollars in thousands): (Click the icon to view the financial
PLEASE ANSWER ASAP
Financial statement data of Off Road Travel magazine include the following items (dollars in thousands): (Click the icon to view the financial statement data.) Requirements 1. Compute Off Road Travel'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, $97,500 b. Borrowed $189,000 on a long-term note payable C. Issued 6,500 shares of common stock, receiving cash of $138,600 d. Received cash on account, $22,000 $ 20,000 84,500 $ Cash ...... Accounts receivable, net Inventories Total assets..... Short-term notes payable... Accounts payable Accrued liabilities Long-term liabilities Net income.... Common shares outstanding $ 142,100 $ 630,000 $ 47,000 $ 106,000 $ 27,000 $ 204,300 $ 65,520 52,000 Requirement 1. Compute Off Road Travel's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places. Current Ratio Debt Ratio Earnings per Share Requirement 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Purchased inventory on account, $97,500 (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share b. Borrowed $189,000 on a long-term note payable. (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share b. Borrowed $189,000 on a long-term note payable. (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share c. Issued 6,500 shares of common stock, receiving cash of $138,600. (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share d. Received cash on account, $22,000. (Round your answers to two decimal places.) Current Ratio Debt Ratio Earnings per Share
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started