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The financial statements for Royale and Cavalier companies are summarized here: Rayale Cavalier Company Company Balance Sheet Cash 5 16, 000 s 81, 000 Accounts

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The financial statements for Royale and Cavalier companies are summarized here: Rayale Cavalier Company Company Balance Sheet Cash 5 16, 000 s 81, 000 Accounts Receivable, Net 46,000 7,000 Inventory 92,000 7,000 Equipment, Net 532,000 142,000 Other Assets 131,000 37,000 Total Assets $817,000 $274,000 Current Liabilities $102,000 $ 19,000 Note Payable (longterm) 172,000 37,000 Common Stock (par $20] 471,000 201,000 Additional PaidIn Capital 41,000 10,000 Retained Earnings 31,000 7,000 Total Liabilities and Stockholders' Equity $817,000 $274,000 Income Statement Sales Revenue $773,000 $253,000 Cost of Goods Sold 471, 000 141, 000 Other Expenses 231,000 86,000 Net Income $ 71,000 $ 26,000 Other Data Per share price at end of year $ 19.00 $ 19.00 Selected Data from Previous Year Accounts Receivable, Net $ 33,000 $ 5,000 Note Payable (longterm) 172,000 37,000 Equipment, Net 532,000 142,000 , Inventory 86,000 29,000 Total Stockholders' Equity 543,000 213,000 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 nancial statements. Royale Company wants to borrow $66,000 cash and Cavalier Company is asking for $21,000. The loans will be fora tworyear 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: 1. Calculate the following ratios. {Use 365 days in a year. Round your intermediate calculations and nal answers to 2 decimal places} Ratio Royale Cavalier Company Company Tests of Profitability: 1. Net Profit Margin % % 2. Gross Profit Percentage % 3. Fixed Asset Tumover 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

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