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The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet Cash $ 22,000 $ 47,000 Accounts Receivable, Net

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

Royale Company Cavalier Company
Balance Sheet
Cash $ 22,000 $ 47,000
Accounts Receivable, Net 52,000 13,000
Inventory 104,000 19,000
Equipment, Net 544,000 154,000
Other Assets 137,000 43,000
Total Assets $ 859,000 $ 276,000
Current Liabilities $ 114,000 $ 9,000
Notes Payable (long-term) 184,000 49,000
Common Stock (par $20) 477,000 207,000
Additional Paid-In Capital 47,000 4,000
Retained Earnings 37,000 7,000
Total Liabilities and Stockholders Equity $ 859,000 $ 276,000
Income Statement
Sales Revenue $ 791,000 $ 271,000
Cost of Goods Sold 477,000 147,000
Other Expenses 237,000 92,000
Net Income $ 77,000 $ 32,000
Other Data
Per share price at end of year $ 19.00 $ 11.00
Selected Data from Previous Year
Accounts Receivable, Net $ 44,000 $ 11,000
Notes Payable (long-term) 184,000 49,000
Equipment, Net 544,000 154,000
Inventory 92,000 35,000
Total Stockholders' Equity 561,000 218,000

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 $72,000 cash and Cavalier Company is asking for $27,000. 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.

Calculate the following ratios. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) image text in transcribed

please help with the blank ones

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