The balance sheet for Shaver Corporation reported the following: cash, $15,000; short-term investments, $20,000; net accounts receivable, $55,000; inventories, $60,000; prepaids, $20,000; 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.

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

2-a. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets?