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The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet Cash $ 1 8 , 0 0 0

The financial statements for Royale and Cavalier companies are summarized here:
Royale
Company Cavalier
Company
Balance Sheet
Cash $ 18,000 $ 75,000
Accounts Receivable, Net 48,0009,000
Inventory 96,00011,000
Equipment, Net 536,000146,000
Other Assets 133,00039,000
Total Assets $ 831,000 $ 280,000
Current Liabilities $ 106,000 $ 19,000
Note Payable (long-term)176,00041,000
Common Stock (par $20)473,000203,000
Additional Paid-In Capital 43,0008,000
Retained Earnings 33,0009,000
Total Liabilities and Stockholders Equity $ 831,000 $ 280,000
Income Statement
Sales Revenue $ 779,000 $ 259,000
Cost of Goods Sold 473,000143,000
Other Expenses 233,00088,000
Net Income $ 73,000 $ 28,000
Other Data
Per share price at end of year $
20.00
$ 17.00
Selected Data from Previous Year
Accounts Receivable, Net $ 40,000 $ 7,000
Note Payable (long-term)176,00041,000
Equipment, Net 536,000146,000
Inventory 88,00031,000
Total Stockholders' Equity 549,000220,000
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 $68,000 cash and Cavalier Company is asking for $23,000. 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.
1. Calculate the following ratios for the Royale company and the cavalier company (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.)
1- Net profit margin
2-gross profit percentage
3-fixed asset turnover
4-return on equity
5-earnings per share
6-price/ earning ratio
7-recieveables turnover
days to collect
8-inventory turnover
days to sell
9-current ratio
10-debt to assets

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