REQUIREMENTS:

1.	Compute Eastland'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 withthe current ratio,followed by the debt ratio, and then endings pershare.
2.	Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
	a.	Borrowed $115,000 on a? long-term note payable.
	b.	On January? 1, Issued 15,000 shares of common? stock, receiving cash of $367,000.
	c.	Paid? short-term notes? payable, $30,000.
	d.	Purchased merchandise of $44,000 on? account, debiting Inventory.
	e.	Received cash on? account, $15,000.

Cash	$20,000		Accounts payable	$104,000
Short-term investments	36,000		Accrued liabilities	32,000
Accounts receivable, net	88,000		Long-term notes payable	165,000
Inventories	146,000		Other long-term liabilities	31,000
Prepaid expenses	7,000		Net income	99,000
Total assets	672,000
Short-term notes payable	40,000		# of common shares outstanding	49,000