Part one:

A) Barton Chocolates used a promissory note to borrow $1,050,000 on July 1, 2018, at an annual interest rate of 5 percent. The note is to be repaid in yearly installments of $210,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2023). Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2018. (Do not round intermediate calculations.)

B) The balance sheet for Shaver Corporation reported the following: cash, $13,500; short-term investments, $18,500; net accounts receivable, $52,000; inventories, $57,000; prepaids, $18,500; equipment, $111,000; current liabilities, $57,000; notes payable (long-term), $87,000; total stockholders equity, $126,500; net income, $5,020; interest expense, $7,800; income before income taxes, $10,380.

1) Compute Shavers debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.)