The balance sheet for Shaver Corporation reported the following: cash, $ 5,000; short-term investments, $ 10,000; net

Question:

The for Shaver reported the following: cash, $ 5,000; short-term investments, $ 10,000; net accounts receivable, $ 35,000; inventory, $ 40,000; prepaids, $ 10,000; equipment, $ 100,000; current liabilities, $ 40,000; notes payable (long-term), $ 70,000; total stock-holders’ equity, $ 90,000; net income, $ 3,320; interest expense, $ 4,400; income before income taxes, $ 5,280. Compute Shaver’s debt-to-assets ratio and times interest earned ratio. Based on these ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? Is it prob-able that Shaver will be able to meet its future interest obligations? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...