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The balance sheet for Shaver Corporation reported the following: cash. $13,000; short term Investments, $18,000, net accounts receivable, $51,000; inventories. $56,000: prepaids, $18,000; equipment, $107.000;

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The balance sheet for Shaver Corporation reported the following: cash. $13,000; short term Investments, $18,000, net accounts receivable, $51,000; inventories. $56,000: prepaids, $18,000; equipment, $107.000; current liabilities. $56,000; notes payable long term). $86,000 total stockholders' equity, $121.000; net Income $4.920, interest expense. $7.600 Income before income taxes. $10,080 1. Compute Shaver's debt-to-assets ratio and times interest earned ratio (Round your answers to 2 decimal places.) Ratio Dobito Assets Times Interest Eamed 2-6. Based on these ratios, does it appear Shaver relles mainly on debt or equity to finance its assets? O Debt O Equity 2-b. Is it probable that Shaver will be able to meet its future interest obligations? 0 Yes O No

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