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M10-13 (Algo) Computing the Debt-to-Assets Ratio and the Times Interest Earned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following cash, $17,500; short-term investments, $22,500; net accounts receivable, $60,000; inventory, $65,000; prepaids, $22,500; equipment, $106,000; current liablilises, $65,000; notes payable flongterm). $95,000; total stockholders' equity, $133,500; net income, $5,820; interest expense, $9,400; income before income taxes. $12,780 Required: 1. Compute Shaver's debt to-assets ratio and times interest eamed 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. Compute Shaver's debe-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) M10-13 (Algo) Computing the Debt-to-Assets Ratio and the Times Interest Earned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following; cash, $17,500; short-term investments, $22,500; net accounts recelvable, $60,000; inventory, $65,000; prepaids, $22,500; equipment, $106,000; current liabilities, $65,000; notes payable (lon term). $95,000; total stockholders' equity, $133,500; net income, $5,820; interest expense, $9,400; income before income taxes. $12,780 Required: 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? M10-13 (Algo) Computing the Debt-to-Assets Ratio and the Times Interest Earned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following: cash, $17,500; short-term investments, $22,500; net accounts receivable, $60,000; inventory, $65,000; prepaids, $22,500; equipment, $106,000; current liabilities, $65,000; notes payable (long term). $95,000; total stockholders' equity, $133,500; net income, $5,820; interest expense, $9,400; income before income taxes, $12,780 Required: 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. Is it probable that Shaver will be able to meet its future interest obligations

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