The balance sheet for Shaver Corporation 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 Shavers 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?