Entry Level Accounting Course Question

Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Total assets (40% of which are current) Current liabilities Bonds payable, 12% Capital stock, $5 par value Retained earnings Total liabilities & stockholders' equity Year 2 $ 429,000 $ 89,990 100,000 100,000 149,000 $ 429,000 Year 1 $ 334,000 $ 100, GGG 50,000 100,000 84,000 $ 334,000 Dividends of $16,000 were declared and paid in year 2. a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.) b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.) c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.) a Current ratio b. Debt ratio c. Earnings per share Year 2 to 1 % Year 1 to 1 %