PA13-6 Using Ratios to Compare Loan Requests from Two Companies [LO 13-4, 13-5, 13-6] 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 $ 29,000 59,000 118,000 558,000 144,000 $908,000 $128,000 198,000 484,000 54,000 44,000 $900,000 $ 49,000 20,000 33,000 168,000 50,000 $320,000 $ 23,000 63.000 214.000 8,000 12,000 $320,000 $812,000 484,000 244,000 $ 84,000 $292.000 154,000 99,000 $ 39,000 $ 19.00 $ 17.00 $ 51,000 198,000 558,000 99,000 582,000 $ 18,000 63.000 168.000 42.000 234.000 These two companies are in the same business and state but different cities. Each company has been in operation for about 10 years. Be statements. Royale Company wants to borrow $79,000 cash and Cavalier Company is asking for $34,000. The loans will be for a two-yer Cavaler nas estimated slightly higher uncollectible rates than Royale. Neither company issued stock in the current year. Assum average and all sales are on account. $ 19.00 $ 17.00 Perware price at end of year Seaded Data from previous Year Accounts Receivable Net Note Payable long-term Er Net vendary Total Stochond Equity S 18.000 63000 602.000 234.000 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 $79,000 cash and Cavalier Company is asking for $34,000. The loans will be for a two-year period. Both companies estimate bad debts based on an aging analysis, but Cavaler has estimated sighty higher uncollectible rates an Roywe. Neither company issued lock in the current year. Assume the end-of-year lotal assets and not equipment balances approximate ne years average and l ies are on account Required: 1. Calculate the following ratios(Us 365 days in a year. Round your intermediate calculations and inal answers to 2 decimal places) Morg 2 Gross Pro Percentage 40.4015 MacBook Air