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The financial statements for Royale and Cavalier companies are summarized here: Royale Company Cavalier Company Balance Sheet Cash $ 29,000 $ 49,000 Accounts Receivable, Net

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

Royale Company Cavalier Company
Balance Sheet
Cash $ 29,000 $ 49,000
Accounts Receivable, Net 59,000 20,000
Inventory 118,000 33,000
Equipment, Net 558,000 168,000
Other Assets 144,000 50,000
Total Assets $ 908,000 $ 320,000
Current Liabilities $ 128,000 $ 23,000
Notes Payable (long-term) 198,000 63,000
Common Stock (par $20) 484,000 214,000
Additional Paid-In Capital 54,000 8,000
Retained Earnings 44,000 12,000
Total Liabilities and Stockholders Equity $ 908,000 $ 320,000
Income Statement
Sales Revenue $ 812,000 $ 292,000
Cost of Goods Sold 484,000 154,000
Other Expenses 244,000 99,000
Net Income $ 84,000 $ 39,000
Other Data
Per share price at end of year $ 19.00 $ 17.00
Selected Data from Previous Year
Accounts Receivable, Net $ 51,000 $ 18,000
Notes Payable (long-term) 198,000 63,000
Equipment, Net 558,000 168,000
Inventory 99,000 42,000
Total Stockholders' Equity 582,000 234,000

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 $79,000 cash and Cavalier Company is asking for $34,000. 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:

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

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