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The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-term investments, $10,000; net accounts receivable, $35,000; inventories, $40,000; prepaids, $10,000; equipment, $100,000; current liabilities, $40,000; notes payable (long- term), $70,000; total stockholders' 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. (Round your answers to 2 decimal places.)

The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-term investments, $10,000; net accounts receivable, $35,000; inventories, $40,000; prepaids, $10,000; equipment, $100,000; current liabilities, $40,000; notes payable (long- term), $70,000; total stockholders' 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. (Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-term investments, $10,000; net accounts receivable, $35,000; inventories, $40,000; prepaids, $10,000; equipment, $100,000; current liabilities, $40,000; notes payable (long- term), $70,000; total stockholders' 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. (Round your answers to 2 decimal places.)
Transcribed Image Text:The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-term investments, $10,000; net accounts receivable, $35,000; inventories, $40,000; prepaids, $10,000; equipment, $100,000; current liabilities, $40,000; notes payable (long- term), $70,000; total stockholders' 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. (Round your answers to 2 decimal places.)
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