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The balance sheet tor Shaver Corporation reported the following: cash, $11,000; short-term investments, $16,000; net accounts receivable $47,000; inventory, $52,000; prepaids, $16,000; equipment, $121,000; current

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The balance sheet tor Shaver Corporation reported the following: cash, $11,000; short-term investments, $16,000; net accounts receivable $47,000; inventory, $52,000; prepaids, $16,000; equipment, $121,000; current liabilities, $52,000; notes payable (long term), $82,000; total stockholders equity, $210,000; net income, $4,520; interest expense, $6,800; income before income taxes, $8,880. Compute Shaver's debt-to-assets ratio and times interest earned ratio (Round your answers to 2 decimal places.) Based on these rabos, does if appear Shaver relies mainly on debt or equality to finance its assets? Debt Equity Is it probable that Shaver will be able to meet its future intetest obligations? Yes No

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