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The financial statements for Royale and Cavalier companies are summarized here: table [ [ , table [ [ Royale ] , [ Company
The financial statements for Royale and Cavalier companies are summarized here:
tabletableRoyaleCompanytableCavalierCompanyBalance SheetCash$$Accounts Receivable, Net,InventoryEquipment Net,ther Assets,Total Assets,$$Current Liabilities,bar $$Note Payable longtermCommon Stock par $Additional PaidIn Capital,Retained Earnings,Total Liabilities and Stockholders' Equity,$$Income StatementSales Revenue,$$Cost of Goods Sold,Other Expenses,Net Income,$$Other DatatablePer share price at end of yearSelected Data from Previous Year$$Accounts Receivable, Net,$$Note Payable longtermEquipment Net,InventoryTotal Stockholders' Equity,
These two companies are in the same business and state but different cities. Each company has been in operation for about years. Both companies received an unqualified audit opinion on the financial statements. Royale Company wants to borrow $ cash and Cavalier Company is asking for $ The loans will be for a twoyear 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 endofyear total assets and net equipment balances approximate the year's average and all sales are on account. Required:
Required:
Calculate the following ratios. Use days in a year. Round your intermediate calculations and final answers to decimal places.
tableRatiotableRoyaleCompanytableCavalierCompanyTests of Profitability:,,Net Profit Margin,,Gross Profit Percentage,,,,Fixed Asset Turnover,,Return on Equity,,,,Earnings per Share,,,,PriceEarnings Ratio,,,,Tests of Liquidity:,,,,,Receivables Turnover,,,,Days to Collect,,,,Inventory Turnover,,,,Days to Sell,,,,Current Ratio,,,,Tests of Solvency:,,,,,DebttoAssets,,,,
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