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The financlal statements for Royale and Cavaller companles are summarlzed here: These two companles are In the same business and state but different citles. Each
The financlal statements for Royale and Cavaller companles are summarlzed here: These two companles are In the same business and state but different citles. Each company has been In operation fo about 10 years. Both companles recelved an unqualified audit opinion on the financlal statements. Royale Company wants to borrow $72,000 cash and Cavalier Company is asking for $27,000. The loans will be for a two-year perlod. Both companles estimate bad debts based on an aging analysls, but Cavaller has estlmated slightly higher uncollectible rates than Royale. Nelther company Issued stock In the current year. Assume the end-of-year total assets and net equipment balances approxlmate the year's average and all sales are on account. Required: Hope Manufacturing is the largest uniform supplier In North America. Selected Information from its annual report follows. For the 2019 fiscal year, the company reported sales revenue of $6.3 billion and Cost of Goods Sold of $4.5 billion. Required: Assuming that all sales are on credit, compute the following ratios for 2019. (Do not round intermedlate calculations. Round your final answers to 2 decimal places.)
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