Can you please help me answering this question, please! Question 6 (of 9) value

Question

Can you please help me answering this question, please! Question 6 (of 9) value 2.22 points M10-13 Computing the Debt-to-Assets Ratio and the Times Interest Eaned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following cash, $13,000, short-term investments $18,000: net accounts receivable, $51,000; inventory, $56,000; prepaids, $18,000; equipment $107,000 current liabilities, $56,000; notes payable (long-term), $86,000: total stockholders' equity, $250,000, net ncome, $4,920; interest expense, $7,600; income before income taxes, $10,080 Cmpue Shaver's debt-fo assets ratlo and times interest earmed ratio. (Round your answers to 2 decimal places.) Ratio Debt-to-Assets Times Interest Earned

Explanation / Answer

1.

Debt-to-Assets = Total debt ÷ Total assets = 142,000÷263,000 = 0.54

Income before interest and income taxes = Income before income taxes + Interest expense = 10,080+7,600 = $17,680

Interest expense = $7,600

Times interest earned = Income before interest and income taxes ÷ Interest expense = 17,680÷7,600 = 2.33

Current liabilities $56,000 Notes payable (long term) 86,000 Total debt $142,000

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