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

	Royale Company	Cavalier Company
Balance Sheet
Cash	$ 31,000	$ 51,000
Accounts Receivable, Net	61,000	22,000
Inventory	122,000	37,000
Equipment, Net	562,000	172,000
Other Assets	146,000	52,000
Total Assets	$ 922,000	$ 334,000
Current Liabilities	$ 132,000	$ 27,000
Notes Payable (long-term)	202,000	67,000
Common Stock (par $20)	486,000	216,000
Additional Paid-In Capital	56,000	10,000
Retained Earnings	46,000	14,000
Total Liabilities and Stockholders Equity	$ 922,000	$ 334,000
Income Statement
Sales Revenue	$ 818,000	$ 298,000
Cost of Goods Sold	486,000	156,000
Other Expenses	246,000	101,000
Net Income	$ 86,000	$ 41,000
Other Data
Per share price at end of year	$ 18.00	$ 15.00
Selected Data from Previous Year
Accounts Receivable, Net	$ 53,000	$ 20,000
Notes Payable (long-term)	202,000	67,000
Equipment, Net	562,000	172,000
Inventory	101,000	44,000
Total Stockholders' Equity	588,000	240,000

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 $81,000 cash and Cavalier Company is asking for $36,000. 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.)

Ratio Royale Company Cavalier Company 10.51% 13.76% 40.59% % % % 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