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

	Royale Company				Cavalier Company
Balance Sheet
Cash	$	21,000			$	50,000
Accounts Receivable, Net		51,000				12,000
Inventory		102,000				17,000
Equipment, Net		542,000				152,000
Other Assets		136,000				42,000
Total Assets	$	852,000			$	273,000
Current Liabilities	$	112,000			$	7,000
Note Payable (long-term)		182,000				47,000
Common Stock (par $20)		476,000				206,000
Additional Paid-In Capital		46,000				5,000
Retained Earnings		36,000				8,000
Total Liabilities and Stockholders Equity	$	852,000			$	273,000
Income Statement
Sales Revenue	$	788,000			$	268,000
Cost of Goods Sold		476,000				146,000
Other Expenses		236,000				91,000
Net Income	$	76,000			$	31,000
Other Data
Per share price at end of year	$	20.00			$	12.00
Selected Data from Previous Year
Accounts Receivable, Net	$	43,000			$	10,000
Note Payable (long-term)		182,000				47,000
Equipment, Net		542,000				152,000
Inventory		91,000				34,000
Total Stockholders' Equity		558,000				219,000

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 $71,000 cash and Cavalier Company is asking for $26,000. 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:

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

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