1. Compute Westland'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 $ 100,000 on a long-term note payable.
b. On January 1, Issued 40,000 shares of common stock, receiving cash of $363,000.
c. Paid short-term notes payable, $29,000.
d. Purchased merchandise of $48,000 on account, debiting Inventory.
e. Received cash on account, $22,000.