Financial statement data of Metro Engineering Limited include the following items:

Requirements
1. Compute Metro's current ratio, debt ratio, and earnings per share. Use the following format for your answer (use dollar and share amounts in thousands except for EPS):

2. Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
a. Borrowed $27,000 on a long-term note payable
b. Issued 10,000 common shares, receiving cash of $108,000
c. Paid short-term notes payable, $51,000
d. Purchased merchandise of $48,000 on account, debiting Inventory
e. Received cash on account, $6,000
Format your answer as follows:

Transcribed Image Text:

Cash Short-term investment Accounts receivable, net Inventories Prepaid expenses Total assets 47,000 Accounts payable 21,000 Accrued liabilities 102,000 Long-term notes payable 274,000 Other long-term liabilities 15,000 Net income 933,000 Number of common shares 72,000 $142,000 50,000 .. 146,000 78,000 104,000 Short-term notes payabe outstanding 22,000 Requirement 1 Current ratio Debt ratio Earnings per share Requirement 2 Transaction (letter) Current ratio Debt ratio Earnings per share