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5 I he balance sheet tor Shaver Corporation reported the tollowing: cash, $8,5oo; short-term investments, $13,500; net accounts receivable, $42,000; inventories, $47,000; prepaids, $13,500; equipment,

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5 I he balance sheet tor Shaver Corporation reported the tollowing: cash, $8,5oo; short-term investments, $13,500; net accounts receivable, $42,000; inventories, $47,000; prepaids, $13,500; equipment, $101,000; current liabilities, $47,000; notes payable (long term), $77000; total stockholders' equity, $160,000; net income, $4,020; interest expense, $5,800; income before income taxes $7,380. 16.66 points 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Skipped Ratio Debt-to-Assets Times Interest Earned eBook Print 2-a. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? Debt Equity 2-b. Is it probable that Shaver will be able to meet its future interest obligations? Yes No

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