Financial statement data of Yankee Traveler magazine include the following items (dollars in thousands):

Cash.............................................................................................................. $ 23,000

Accounts receivable, net.............................................................................. $ 81,000

Inventories.................................................................................................... $ 192,100

Total assets................................................................................................... $ 630,000

Short- term notes payable............................................................................ $ 50,000

Accounts payable......................................................................................... $ 102,000

Accrued liabilities......................................................................................... $ 58,000

Long- term liabilities...................................................................................... $ 174,300

Net income................................................................................................... $ 72,000

Common shares outstanding....................................................................... 50,000

Requirements

1. Compute Yankee Traveler’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, $ 36,000

b. Borrowed $ 189,000 on a long- term note payable

c. Issued 6,250 shares of common stock, receiving cash of $ 138,600

d. Received cash on account, $ 19,000