Financial statement data of Junior Sports Shop include the following items:

Requirements 

1. Compute Junior Sports Shop’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. Received cash on account, $28,000.

b. Paid short-term notes payable, $5,000.

c. Borrowed $26,000 on a long-term note payable.

d. Issued 8,000 shares of common stock, receiving cash of $80,000.

e. Purchased merchandise inventory of $9,600 on account.

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Cash Accounts Receivable Short-term Investments Merchandise Inventory Prepaid Expenses Total Assets Net Income Accounts Payable Accrued Liabilities Short-term Notes Payable Long-term Notes Payable Other Long-term Liabilities Common Shares Outstanding $ 5,000 16,400 7,600 29,800 1,200 134,800 19,200 20,200 7,400 8,200 32,000 7,400 10,400 shares