Reference no: EM13596749

The balance sheet for Shaver Corporation reported the following current assets $100,000; inventory $40,000, prepaids $10,000; current liabilities, $40,000; total stockholders' equity, $90,000, net income, $3,320; interest expense, $4,400; income before income taxes, $5,280. Compute Shaver's quick ratio and times interest earned ratio. Based on these ratios, does it appear Shaver will be able to meet its obligations to pay current liabilities and future interest obligations as they become payable?