M10-13 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 $16.500; short-term investments, $21,500; net accounts receivable, $58,000, inventories, $63,000; prepaids, $21.500, equipment, $103,000; current liabilities, $63,000; notes payable (long- term). $93,000; total stockholders' equity, $127,500; net income. $5,620; interest expense. $9,000; income before income taxes, $12,180 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned 2-a. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? 2-a. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? O Debt Equity 2-b. Is it probable that Shaver will be able to meet its future interest obligations? Yes No