The financial statements for Royale and Cavalier companies are summarized here: Royale Cavalier Company Balance Sheet Company Cash $ 20,000 $ 63,000 Accounts Receivable, Net 50,000 11,000 Inventory 100,000 15.000 Equipment, Net 540,000 150.000 Other Assets 135,000 41,080 Total Assets $845,000 $280,000 Current Liabilities $110,000 $ 15,800 Note Payable (long-tern) 180,000 45,000 Common Stock (par $20) 475,000 285,000 Additional Paid-In Capital 45,000 6,000 Retained Earnings 35,000 9,000 Total Liabilities and Stockholders' Equity $845,000 $280,000 Income Statement Sales Revenue $785,000 $265,000 Cost of Goods Sold 475,000 145,000 Other Expenses 235,000 90,000 Net Income $ 75,000 $ 30,000 Other Data Per share price at end of year $ 18.00 $ 14.00 Selected Data from Previous Year Accounts Receivable, Net $ 42,000 59,000 Note Payable (long-term) 180,000 45,000 Equipment, Net 540,000 150,000 Inventory 90,000 33,000 555,000 220,000 Total Stockholders' Equity 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 $70,000 cash and Cavalier Company is asking for $25,000. 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 occount 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 9.55% 39.49% 1.16 13.51% 11,321 45 28% 1.39 13.64% Tests of Profitability 1. Net Profit Margin 2. Gross Profit Percentage 3. Fixed Asset Tumover 4. Return on Equity 5. Earnings per Share 6. Prio/Earnings Ratio Tests of Liquidity 7. Receivables Turnover Days to Collect 8. Inventory Tumover Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets