Question: based on these ratios, does it appear Schaber relies mainly on debt or equity to finance its assets? DEBT OR EQUITY is it probable that

based on these ratios, does it appear Schaber relies mainly on debt or equity to finance its assets?

DEBT OR EQUITY

is it probable that shaver will be able to meet its future interest obligation?

YES OR NO

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, $7,500; short-term investments, $12,500; net accounts receivable, $40,000; inventory, $45,000, prepaids, $12,500; equipment, $120,000; current liabilities, $45,000; notes payable (longterm), $75,000; total stockholders' equity, $117,500; net income, $3,820; interest expense, $5,400; income before income taxes, $6,780 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? 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. Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places

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