Data TableCash …….. … …….. .. $ 25,000 Accounts payable ……… $ 103,000Short-term investments …… 32,000 Accrued liabilities ……… 33,000 Accounts receivable, net. . … 85,000 Long-term notes payable… 165,000 Inventories. ….. ….. …… 144,000 Other long-term liabilities… 31,000Prepaid expenses ……….. 3.000 Net income . …………. 91,000 Total assets. …………… 679,000 Number of commonShort-term notes payable. …. 48,000 shares outstanding ….. 44,000Page 1

Definition
1. Compute Realtime’s current ratio, debt ratio, and earnings per share. (Round all ratios to twodecimal places.)2. Compute the three ratios after evaluating the effect of each transaction that follows.Consider each transactionseparatelya. Borrowed $135,000 on a long-tenn note payable.b. Issued 30,000 shares of common stock, receiving cash of $368,000 .c. Paid short-term notes payable, $29,000.d. Purchased merchandise of $46,000 on account, debiting Inventory.e. Received cash on account, $23,000.

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FORMULASCurrent Ratio: Total Assets I Total Liabilities Debt Ratio:Total Liabilities I Total AssetsEarnings per share: Net Income / Common shares oustanding