Financial statement data of Excursion Trips, Inc. include the following items: 

Requirements 

1. Compute Excursion Trips, Inc.’s current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer:

2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. 

a. Purchased merchandise inventory of $49,000 on account. 

b. Borrowed $122,000 on a long-term note payable. 

c. Issued 6,000 shares of common stock, receiving cash of $103,000. 

d. Received cash on account, $3,000.  

Transcribed Image Text:

Cash Accounts Receivable, Net Merchandise Inventory Total Assets Accounts Payable Accrued Liabilities Short-term Notes Payable Long-term Liabilities Net Income Common Shares Outstanding $ 23,000 79,000 184,000 634,000 104,000 40,000 47,000 221,000 74,000 60,000 shares