Question

Transactions a. Purchased merchandise inventory of $48,000 on account. b. Borrowed $127,000 on a long-term note payable. c. I

Financial statement data of American Traveler Magazine include the following items EE (Click the icon towew the data.) Read t


Find current ratio, debt ratio and earnings per share

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Answer #1

Current Ratio = CA/CL

CA=5000+79000+186000+106000+21000+48000=445,000

CL=102000+38000+49000+48000=237,000

CR=1.8776

Debt Ratio =TA/TL

TA=639,000+48000+106000+5000=798,000

TL=237,000+127000+221000=585,000

DR=1.3641

EPS=69000/10000=6.9

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