Concept Introduction
Debt Ratio: Debt ratio is a financial ratio that shows the percentage of total assets that is financed by the total liabilities of a company.
Earnings per Share: Earnings per Share (EPS) is a financial profitability ratio that measures the amount of net income available to common stockholders earned on one share. It is calculated by dividing net income available to common stockholders by the average (or weighted average) number of shares outstanding during a period.
Requirement 1
To Compute:
Off Road Traveler’s current ratio, debt ratio, and earnings per share.
Requirement 2
To Compute:
The three ratios that are current ratio, debt ratio and earnings per share after evaluating the effect of each given transaction.
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Horngren's Accounting (11th Edition)
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