Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the fillowinf incorrect boxes The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet

I need help with the fillowinf incorrect boxes image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets Total Assets Current Liabilities Note Payable (long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Other Data Per share price at end of year Selected Data from previous Year Accounts Receivable, Net Note Payable (long term Equipment, Net Inventory Total Stockholders' Equity $ 26,000 56,000 112,000 552,000 141,000 $887,000 $122,000 192.000 481,000 51,000 41,000 $887,000 $ 46,000 17,000 27,000 162,000 47,000 $299,000 $ 17,000 57,000 211,000 5,000 9,000 $299,000 $803, eee 481,000 241.000 $ 81,000 $283,000 151,000 96,000 $36,000 $19.00 $ 11.00 $ 48,00 192,000 552.000 96,000 573,000 $ 15,000 57,000 162,000 39.000 225.000 These two companies are in the same business and state but different cities. Each company has been in operation for about 10 years. Both companies received an unqualified audit opinion on the financial statements. Royale Company wants to borrow $76,000 cash and Cavalier Company is asking for $31.000. The loans will be for a two-year period. Both companies estimate bad debts based on an aging analysis, but Cavalier has estimated slightly higher uncollectible rates than Royale. Neither company issued stock in the current year. Assume the end-of-year total assets and net equipment balances approximate the year's average and all sales are on account Required: 1. Calculate the following ratios (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Ratio Rayoto Company Cavalier Company Tests of Profitability 1. Net Profit Margin 2 Gross Prolit Percentage 3. Fixed Asset Tumover 4 Return on Equity 5. Earnings per Share 5. Pole/Earnings Ratio Tests of Liquidity 7 Receivables Tumover Days to Collect Inventory Turnover 10.09% 40 101% 1.45 14.14% 3.37 564 12.72% 46 64% 1.75 16.00% S 3:41 3.23 $ 1434 25:45 4:29 1665 2192 5.591 Ratio Royale Company Cavalier Company 10.09% 12.72% 40.10% 46.64% 1.75 1.45 3 16.00 % $ $ 14.14% 3.37 5.64 $ 3.41 3.23 Tests of Profitability 1. Net Profit Margin 2. Gross Profit Percentage 3. Fixed Asset Tumover 4. Return on Equity 5. Earnings per Share 6. Price/Earnings Ratio Tests of Liquidity 7. Receivables Turnover Days to Collect 8. Inventory Turnover Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets 14.34 25.45 16.65 21.92 5.59 4.29 1.59 5.29 35.00 25.00 Ratio Royale Company Cavalier Company 10.09 % Tests of Profitability 1. Net Profit Margin 2. Gross Profit Percentage 3. Fixed Asset Turnover 4. Return on Equity 5 Earnings per Share 6. Price/Earnings Ratio Tests of Liquidity 7 Receivables Turnover Days to Collect 8 Inventory Turnover Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets 40.10 % 1.45 14.14 % $ 3.37 5.64 12.72% 46.64 % 1.75 16.00 % $ 3.41 3.23 14.34 X 25,45 4.29% 16.65 X 21.92 X 5.59 X 1.59 5.29 35.00 X 25.00 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Analysis And Decision Making

Authors: David E. Vance

1st Edition

0071406654, 9780071406659

More Books

Students also viewed these Accounting questions

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago