- The Balance Sheet For Shaver Corporation Reported The Following Cash 15 000 Short Term Investments 20 000 Net Acc 1 (22.82 KiB) Viewed 11 times
The balance sheet for Shaver Corporation reported the following: cash, $15,000; short-term investments, $20,000; net accounts receivable, $55,000; inventory, $60,000; prepaids, $20,000; equipment, $123,000; current liabilities, $60,000; notes payable (long- term), $90,000; total stockholders' equity, $143,000; net income, $5,320; interest expense, $8,400; income before income taxes, $11,280. 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. Req 1 Req 2A Req 2B Compute Shaver's debt-to-assets ratio and times interest earned ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned Ratio