M10-13 (Algo) Computing the Debt-to-Assets Ratio and the Times Interest Earned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following: cash, $9,500; short-term investments, $14,500; net accounts receivable, $44,000; Inventory, $49,000; prepaids, $14,500; equipment, $109,000; current liabilities, $49,000; notes payable (long- term), $79,000; total stockholders' equity, $112,500; net income, $4,220; interest expense, $6,200; income before income taxes, $7,980. 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Debt-to-Assets Times Interest Earned Ratio Ratio