9 1.5 points eBook Print References The balance sheet for Shaver Corporation reported the following: cash, $7,500; short-term investments, $12,500, net accounts receivable, $40,000; inventory, $45,000; prepaids, $12,500, equipment, $120,000; current liabilities, $45,000; notes payable (long-term), $75,000; total stockholders' equity, $117,500; net income, $3,820; interest expense, $5,400; income before income taxes, $6,780. Required: 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. 2-a. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? 2-b. Is it probable that Shaver will be able to meet its future interest obligations? D +

The bolance sheet for Shaver Corporation reported the following cash, $7,500, short-term investments, $12,500, net accounts recelvable, $40,000, inventory, $45,000, prepaids, $12,500, equipment, $120,000; current liabilities, $45,000; notes peyable pong-term, $75,000, total stockholders' equity, $117,500, net income, $3.820, interest expense, $5,400, income before income tares, $6780 Required: 1. Compute Shavers debt-to-assets ravio and bmes interest earned rotio 2-a. Based on these retion, does it appear Shaver relies mainly on debt or equty to finance its assets? 2-b. Is it probable that Shaver will be able to meet its future interest obliganons