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The balance sheet for Shaver Corporation reported the following: cash, $15,000; short-term investments, $20,000; net accounts receivable, $55,000; inventory, $60,000; prepaids, 520,000; equipment, $123,000; current
The balance sheet for Shaver Corporation reported the following: cash, $15,000; short-term investments, $20,000; net accounts receivable, $55,000; inventory, $60,000; prepaids, 520,000; equipment, $123,000; current liabilities, $60,000; notes payable (long-term), $90,000; total stockholders' equity, $290,000; net income, $5,320; interest expense, $8,400; income before income taxes, $11, 280. 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio
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