Financial statement data of Style Travel magazine include the following information ­ (dollars in thousands):

Cash.......................................................................................................... $ 24,500

Accounts receivable, net.......................................................................... $ 83,000

Inventories................................................................................................ $ 180,500

Total assets............................................................................................... $ 660,000

Short- term notes payable........................................................................ $ 49,500

Accounts payable..................................................................................... $ 106,000

Accrued liabilities..................................................................................... $ 44,500

Long- term liabilities.................................................................................. $ 182,800

Net income............................................................................................... $ 81,000

Common shares outstanding................................................................... 60,000

Requirements

1. Compute Style 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, $ 75,000

b. Borrowed $ 264,000 on a long- term note payable

c. Issued 7,500 shares of common stock, receiving cash of $ 210,000

d. Received cash on account, $ 21,000