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1. A SIS HIMSREIS Scarements: Tying me anos Togetner The DuPont equation shows the relationships among asset management, debt management, and Sele r atiosManagement can

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1. A SIS HIMSREIS Scarements: Tying me anos Togetner The DuPont equation shows the relationships among asset management, debt management, and Sele r atiosManagement can use the DuPont equation to analyze ways of improving the firm's performance. Its ROE Profit margin x Total sets turnover x Equity multiplier & Ratio analysis is important to understand and interpret financial statements: however, sound financial analysis involves more than just calculating and interpreting numbers. -Select- y factors also Quantitative Problem: Rosnan Industries 2018 and statements are shown below. 38 8N 32112 Balance Sheets SA Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 000 720 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 450 225 .225 700 $2.720 $2,195 Income Statements: 2018 $2,000 2017 $1,500 1.000 $500 $750 100 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest Taxes (40%) Net income $650 $425 62 $588 235 $353 $300 152 $228 053 Dividends pald Addition to retained earnings $300 $180 Shares outstanding Price WACC 100 $25.00 10.00% 522.50 100 Shares outstanding Price WACC $22.50 $25.00 10.00% What is the firm's 2018 current ratio? Round your answer to two decimal places. The 2018 current ratio indicates that Rosnan has Select current assets to meet its current obligations as they come due What is the firm's 2018 total assets turnover ratio? Round your answer to four decimal places Given the 2018 current and total assets turnover ratios calculated above, if Rosnan's 2018 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed -Select- What is the firm's 2018 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 strect cushion than indicated by the industry average What is the firm's 2018 profit margin? Round your answer to two decimal places If the industry average profit margin is 12%, then Rosnan's lower than everage debt-to-capital ratio might be one reason for its high profit margin. -Select- What is the firm's 2018 price/earnings ratio? Round your answer to two decimal places Using the DuPont equation, what is the firm's 2010 ROL? Round your answer to two decimal places and your an Grade R New S ave & Continue Continue without saving

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