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 Notes 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 Accounts Receivable, Net Selected Data from Previous Year Notes Payable (long-term) Inventory Total Stockholders' Equity Equipment, Net $ 35,000 65,000 130,000 570,000 150,000 $ 950,000 $ 140,000 210,000 490,000 60,000 50,000 $ 950,000 $ 830,000 490,000 250,000 $ 90,000 $ 55,000 26,000 45,000 180,000 56,000 $ 362,000 $ 35,000 75,000 220,000 14,000 18,000 $ 362,000 $ 310,000 160,000 105,000 $ 45,000 $ 19.00 $ 57,000 $ 17.00 $ 24,000 75,000 210,000 570,000 105,000 600,000 180,000 48,000 252,000 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 $85,000 cash and Cavalier Company is asking for $40,000. 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: operation foP bout 10 years. Both companies received an unqualified udit opinion on the statements. Royale Company wants to borrow $85,000 cash and Cavalier Company is asking for $40,000. 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.) Cavalier Ratio Royale Company Company 5 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 7. Days to Collect 8. Inventory Turnover 8. Days to Sell 9. Current Ratio Tests of Solvency: 10. Debt-to-Assets % %