Question
Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) $ 474,000
Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) $ 474,000 $ 313,000 Current liabilities $ 80,000 $ 100,000 Bonds payable, 12% 100,000 50,000 Capital stock, $5 par value 100,000 100,000 Retained earnings 194,000 63,000 Total liabilities & stockholders' equity $ 474,000 $ 313,000 Dividends of $16,000 were declared and paid in year 2. a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.) b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.) c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.)
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