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Need help getting debt-to-assets & time interest earned The balance sheet for Shaver Corporation reported the following cash, $16,000; short- term investments, $21,000; net accounts
Need help getting debt-to-assets & time interest earned The balance sheet for Shaver Corporation reported the following cash, $16,000; short- term investments, $21,000; net accounts receivable. $57000; inventory, $62,000; prepaids, $21,000: equipment, $104,000 current liabilities, $62,000 notes payable (long-term), $92000, total stockholders equity $310,000, net income, $5,520; interest expense, $8.800; income before income taxes. $11.880. 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 Based on these ratios, does it appear Shaver relies mainly on debt or equity to 2-a. finance its assets? O Debt O Equity 2-b. Is it probable that Shaver will be able to meet its future interest obligations? Yes O No
Need help getting debt-to-assets & time interest earned
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