The financial statements for Royale and Cavalier companies are summarlzed here: Royale Company Cavalier ompany Balance Sheet Cash $20,000 50,000 100,000 63,000 11,000 Accounts Receivable, Net Inventory Equipment, Net 15,000 150,000 540,000 135,000 Other Assets 41,000 Total Assets $845,000 $280,000 Current Liabilities $110,000 180,000 $15,000 45,000 205,000 6,000 9,000 Note Payable long-term) Common Stock (par $20) Additional Paid-In Capital Retained Earnings 475,000 45,000 35,000 Total Liabilities and Stockholders Equity $845,000 $280,000 Income Statement Sales Revenue $785,000 475,000 235,000 $265,000 145,000 90,000 Cost of Goods Sold Other Expenses $ 75,000 $30,000 Net Income 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 14.00 $9,000 45,000 150,000 33,000 220,000 $42,000 180,000 540,000 90,000 555,000 These two companies are in the same business and state but different clties. 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 account. Required: 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 Ratio Company Tests of Profitability: 11.32% 1. Net Profit Margin 9.55% 2. Gross Profit Percentage 39.49 % 48.21 % 3. Fixed Asset Turnover 1.45 1.77 4. Return on Equity 9.01 % 5. Earnings per Share 6. Price/Earnings Ratio Tests of Liquidity: 7. Receivables Turnover Days to Collect 8. Inventory Turnover Days to Sell 9. Current Ratio Tests of Solvency 10. Debt-to-Assets