Ratios

Data Table

Cash 20000
Accounts Receivable, Net 81000
Inventories 185000
Total Assets 637000
Short-term notes payable 51000
Accounts Payable 99000
Accrued Liabilities 37000
Long-term Liabilities 223000
Net Income 72000
Common Shares Outstanding 20000

1. Compute Style Traveler’s Current Ratio, Debit 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 seperate.
A. Purchased Inventory of $44,000 on Account.
B. Bowwowed $123,000 on long-term note payable.
C. Issued 2,000 shares of common stock, receiving cash of $104,000
D. Received Cash on Account, $6,000.

Ratios

Data Table

Cash 20000
Accounts Receivable, Net 81000
Inventories 185000
Total Assets 637000
Short-term notes payable 51000
Accounts Payable 99000
Accrued Liabilities 37000
Long-term Liabilities 223000
Net Income 72000
Common Shares Outstanding 20000

1. Compute Style Traveler’s Current Ratio, Debit 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 seperate.
A. Purchased Inventory of $44,000 on Account.
B. Bowwowed $123,000 on long-term note payable.
C. Issued 2,000 shares of common stock, receiving cash of $104,000
D. Received Cash on Account, $6,000.