Question

REQUIREMENTS:

1.	Compute Eastland's current? ratio, debt? ratio, and earnings per share. Round all ratios to two decimal places.
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 15,000 shares of common? stock, receiving cash of $367,000.
	c.	Paid? short-term notes? payable, $30,000.
	d.	Purchased merchandise of $44,000 on? account, debiting Inventory.
	e.	Received cash on? account, $15,000.

Cash	$20,000		Accounts payable	$104,000
Short-term investments	36,000		Accrued liabilities	32,000
Accounts receivable, net	88,000		Long-term notes payable	165,000
Inventories	146,000		Other long-term liabilities	31,000
Prepaid expenses	7,000		Net income	99,000
Total assets	672,000		Number of common
Short-term notes payable	40,000		shares outstanding	49,000

Answer 1