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Financial statement data of Greatland Engineering include the following items:

$($Click the icon to view the financial statement data.$)$

Question $1$

Question $2$

Requirement $1.$ Calculate Greatland's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

Start by determining the formula for each ratio, beginning with the current ratio, followed by the debt ratio, and then earnings per share.

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Current ratio

Data table

Requirements

$\backslash$table$[[$Cash$,$$$,26,000,$Accounts payable,$$,107,000],[$Short$-$term investments,,$36,000,$Accrued liabilities,,$32,000],[$Accounts receivable, net,,$85,000,$Long$-$term notes payable,,$163,000],[$Inventories$,,147,000,$Other long$-$term liabilities,,$34,000],[$Prepaid expenses,,$6,000,$Net income,,$99,000],[$Total assets,,$677,000,$Number of common,,$],[$Short$-$term notes payable,,$49,000,$shares outstanding,,$46,000]]$

Calculate Greatland's current ratio, debt ratio, and earnings per share. Round all ratios to two decimal places.

Calculate the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately.

a$.$ Borrowed $$105,000$ on a long$-$term note payable

b$.$ On January $1,$ Issued $40,000$ shares of common stock, receiving cash of $$360,000$

c$.$ Paid off short$-$term notes payable, $$28,000$

d$.$ Purchased $$43,000$ of merchandise on account, debiting Inventory

e$.$ Received cash on account, $$17,000$

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