The financial statements for Royale and Cavalier companies are summarized here Royale Company Cavalier Company Balance Sheet Cash Accounts Receivable, Net Inventory Equipment, Net Other Assets $ 23,000 53,000 106,000 546,000 138,000 $ 43,000 14,000 21,000 156,000 44,000 Total Assets $866,000 $278,000 Current Liabilities $116,000 $ 11,000 Note Payable (long-term) Common Stock (par $20) Additional Paid-in Capital Retained Earnings 186,000 478,000 48,000 38,000 51,000 208,000 2,000 6,000 Total Liabilities and Stockholders' Equity $866,000 $278,000 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $794,000 478,000 238,000 $274,000 148,000 93,000 Net Income $ 78,000 $ 33,000 Other Data Per share price at end of year Selected Data from Previous Year Accounts Receivable, Net Note Payable (long-term) Equipment, Net Inventory Total Stockholders' Equity $ 18.00 $ 15.00 $ 45,000 186,000 546,000 93,000 564,000 $ 12,000 51,000 156,000 36,000 216,000 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 $73,000 cash and Cavalier Company is asking for $28,000. 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 account. Required 1. Calculate the following ratios. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Cavalier Company Company Ratio Royale 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 Days to Collect 8.Inventory Turnove Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets