Financial statement data of Groatland Engineering include the following items:

Cash $26,000

Accounts payable $107,000

Short-term investments 36,000

Accrued liabilities 32,000

Accounts receivable, net 85,000

Long-term notes payable 163,000

Inventories 147,000

Other long-term liabilities 34,000

Prepaid expenses 6,000

Net income 99,000

Total assets 677,000

Short-term notes payable 49,000

Number of common shares outstanding 46,000

REQUIREMENTS:

1.	Calculate Greatland's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.
2.	Calculate the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.
	a.	Borrowed $105,000 on a long-term note payable
	b.	On January 1, Issued 40,000 shares of common stock, receiving cash of $360,000
	c.	Paid off short-term notes payable, $28,000
	d.	Purchased $43,000 of merchandise on account, debiting Inventory
	e.	Received cash on account, $17,000

Requirement 1. Calculate Greatland'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. Current assets Current liabilities Current ratio %3D Total liabilities Total assets Debt ratio %3D Common shares Earnings per Net income Preferred dividends outstanding share Now compute Greatland's current ratio, debt ratio, and earnings per share. (Round all ratios to two decimal places.) Current ratio Debt ratio Earnings per share