Financial statement data of Shawsworth Engineering include the following items: Requirements 1. Compute Shawsworths current ratio, debt

Financial statement data of Shawsworth Engineering include the following items:

Requirements
1. Compute Shawsworth’s current ratio, debt ratio, and earnings per share.
2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
a. Borrowed $ 120,000 on a long-term note payable
b. Issued 15,000 shares of common stock, receiving cash of $364,000
c. Paid short-term notes payable, $24,000
d. Purchased merchandise of $46,000 on account, debiting Inventory
e. Received cash on account,$15,000

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Cash 23,000 Accounts payable .. $107,000 35,000 ....8 87,000 Long-term notes payable 141,000 Other long-term liabilities.. 33,000 95,000 Inventories Prepaid expenses Total assets Short-term n 4,000 675,000 otes payable... 42,000 Net income Number of common .51,000 shares outstandin g.