Question
REQUIREMENTS: 1. Compute Eastland's current? ratio, debt? ratio, and earnings per share. Round all ratios to two decimal places. 2. Compute the three ratios after
REQUIREMENTS:
1. | Compute Eastland'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. | 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 | Number of common | ||
Short-term notes payable | 40,000 | shares outstanding | 49,000 |
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