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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, $20,000; 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, $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. Requlred: 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio. 2-0. 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? Complete this question by entering your answers in the tabs below. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) 1. 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? Complete this question by entering your answers in the tabs below. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? Complete this question by entering your answers in the tabs below. Is it probable that Shaver will be able to meet its future interest obligations
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