Financial statement data of Eastland Engineering include the following? items:

Requirement 1: Compute Eastland's current? ratio, debt? ratio, and earnings per share. Round all ratios to two decimal places. Start by determining the formula for each? ratio, beginning with the current? ratio, followed by the debt? ratio, and then earnings per share.

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

a) Borrowed $115,000 on a? long-term note payable.

b) On January? 1, Issued 30,000 shares of common? stock, receiving cash of $360,000.

c) Paid short-term notes? payable, $30,000.

d) Purchased merchandise of $45,000 on? account, debiting Inventory.

e) Received cash on? account, $24,000.

101,000 Cash 21,000 Accounts payable 36,000 Short-term investments 38,000 Accrued liabilities Accounts receivable, net 163,000 81,000 Long-term notes payable Inventories 145,000 other long-term liabilities 34,000 Prepaid expenses 4,000 Net income 97,000 672,000 Number of Total assets. common Short-term notes payable 44,000 shares outstanding 51,000