Financial statement data of Road Trip Magazine include the following items: Cash.. S 24,000 Accounts receivable,...

 

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Financial statement data of Road Trip Magazine include the following items: Cash.. S 24,000 Accounts receivable, net. 82,000 Inventories. . 188,000 Total assets.. 638,000 Accounts payable . 99,000 Accrued liabilities. . 39,000 Short-term notes payable. 51,000 Long-term liabilities.. 223,000 Net income.. 72,000 Common shares outstanding..20,000 Requirements 1. Compute Road Trip's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer: Current Ratio Debt Ratio Earnings per Share 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Purchased inventory of $45,000 on account. b. Borrowed $127,000 on a long-term note payable. c. Issued 2,000 shares of common stock, receiving cash of $105,000. d. Received cash on account, $7,000. Financial statement data of Road Trip Magazine include the following items: Cash.. S 24,000 Accounts receivable, net. 82,000 Inventories. . 188,000 Total assets.. 638,000 Accounts payable . 99,000 Accrued liabilities. . 39,000 Short-term notes payable. 51,000 Long-term liabilities.. 223,000 Net income.. 72,000 Common shares outstanding..20,000 Requirements 1. Compute Road Trip's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places, and use the following format for your answer: Current Ratio Debt Ratio Earnings per Share 2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. a. Purchased inventory of $45,000 on account. b. Borrowed $127,000 on a long-term note payable. c. Issued 2,000 shares of common stock, receiving cash of $105,000. d. Received cash on account, $7,000.