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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 120 $ 105 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 755 Net plant and equipment Total assets $ 770 2,000 $2,770 1,490 $2,245 Accounts payable $ 150 85 Accruals 75 50 170 195 Notes payable Total current liabilities 395 330 Long-term debt 450 290 Common stock 1,225 1,225 700 400 Retained earnings Total liabilities and equity $2,770 $2,245 Income Statements: 2019 2018 $1,885 1,250 $ 635 $1,425 1,000 $ 425 100 75 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net Income $ 535 63 $ 350 46 $ 472 118 $ 304 76 $ 354 $ 228 Dividends paid Addition to retained earnings $ 54 $ 300 $ 48 $ 180 Shares outstanding Price WACC 100 100 $25.00 $22.50 10.00 % What is the firm's 2019 current ratio? Round your answer to two decimal places. 1.95 The 2019 current ratio indicates that Rosnan has sufficient current assets to meet its current obligations as they come due. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places. 0.68 Given the 2019 current and total assets turnover ratios calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed inefficiently What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal pl -Select- Smaller bigger If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a -Select- cushion than indicated by the industry average. What is the firm's 2019 profit margin? Round your answer to two decimal places. What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. % If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a -Select- v cushion than indicated by the industry average. What is the firm's 2019 profit margin? Round your answer to two decimal places. % If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-capital ratio might be one reason for its high profit margin. -Select- V What is the firm's 2019 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places. %

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