The financial statements for Royale and Cavalier companies are summarized here:

	Royale Company				Cavalier Company
Balance Sheet
Cash	$	32,000			$	52,000
Accounts Receivable, Net		62,000				23,000
Inventory		124,000				39,000
Equipment, Net		564,000				174,000
Other Assets		147,000				53,000
Total Assets	$	929,000			$	341,000
Current Liabilities	$	134,000			$	29,000
Note Payable (long-term)		204,000				69,000
Common Stock (par $20)		487,000				217,000
Additional Paid-In Capital		57,000				11,000
Retained Earnings		47,000				15,000
Total Liabilities and Stockholders Equity	$	929,000			$	341,000
Income Statement
Sales Revenue	$	821,000			$	301,000
Cost of Goods Sold		487,000				157,000
Other Expenses		247,000				102,000
Net Income	$	87,000			$	42,000
Other Data
Per share price at end of year	$	19.00			$	10.00
Selected Data from Previous Year
Accounts Receivable, Net	$	54,000			$	21,000
Note Payable (long-term)		204,000				69,000
Equipment, Net		564,000				174,000
Inventory		102,000				45,000
Total Stockholders' Equity		591,000				243,000

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 $82,000 cash and Cavalier Company is asking for $37,000. 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 years 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.)

Royale Company Cavalier Company % % % % % % Ratio 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