The financial statements for Royale and Cavalier companies are summarized here: Royale Cavalier Company Company Balance Sheet Cash $ 30,000 $ 50,000 Accounts Receivable, Net 60,000 21,000 Inventory 120,000 35,000 Equipment, Net 560,000 170,000 Other Assets 145,000 51,000 Total Assets $915,000 $327,000 Current Liabilities $130,000 $ 25,000 Note Payable (long-term) 200,000 65,000 Common Stock (par $20) 485,000 215,000 Additional Paid-In Capital 55,000 9,000 Retained Earnings 45,000 13,000 Total Liabilities and Stockholders' Equity $915,000 $327,000 Income Statement Sales Revenge $815,000 $295,000 Cost of Goods Sold 485,000 155,000 Other Expenses 245.000 100,000 Net Income $ 85,000 $ 40,000 Other Data Per share price at end of year $ 20.00 $ 15.00 Selected Data from Previous Year Accounts Receivable, Net $ 52,000 $ 19,000 Note Payable (long-term) 200,000 65,000 Equipment, Net 560,000 170,000 Inventory 100,000 43,000 Total Stockholders' Equity 585,000 237,000 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 $80,000 cash and Cavalier Company is asking for $35,000. 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 1. Calculate the following ratios. (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Royale Company Cavalier Company 1% % % % % Ratio 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 Tumover Days to Collect 8. Inventory Turnover Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets Stit