accounting homework question 4, 2
Financial statement data of Style TravelerStyle TravelerMagazine include the following items (dollars in thousands):
|
Cash . . . . . . . . . . . . . . . . . . . . . . . .
|
$24,000
|
|
Accounts receivable, net . . . . . . . .
|
$84,000
|
|
Inventories . . . . . . . . . . . . . . . . . . .
|
$188,000
|
|
Total assets . . . . . . . . . . . . . . . . . .
|
$637,000
|
|
Short-term notes payable . . . . . . .
|
$47,000
|
|
Accounts payable . . . . . . . . . . . . .
|
$100,000
|
|
Accrued liabilities . . . . . . . . . . . . . .
|
$39,000
|
|
Long-term liabilities . . . . . . . . . . . .
|
$223,000
|
|
Net income . . . . . . . . . . . . . . . . . . .
|
$69,000
|
|
Common shares outstanding . . . .
|
20,000
|
Requirement 1.Compute Style TravelerStyle Traveler‘s current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.
| Save Accounting Table… | + | |||
| Copy to Clipboard… | + | |||
|
|
Current Ratio
|
Debt Ratio
|
Earnings Per Share
|
|
1.59
|
0.64
|
$3.45
|
Requirement 2. Compute the three ratios after evaluating the effects of each transaction. Consider each transaction
separately.
(Round all ratios to two decimal places.)
| Save Accounting Table… | + | |||
| Copy to Clipboard… | + | |||
|
|
Current Ratio
|
Debt Ratio
|
Earnings Per Share
|
|
a.
|
|
|
|
