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, $$20,000$; equipment, $$123,000$; current liabilities, $$60,000$; notes payable $($longterm$),$ $$90,000$; total stockholders' equity, $$143,000$; net income, $$5,320$; interest expense, $$8,400$; income before income taxes, $$11,280.$

Required:

Compute Shaver's debt$-$to$-$assets ratio and times interest earned ratio.

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

$2-$b$.$ Is it probable that Shaver will be able to meet its future interest obligations?