Analysis of Financial Statements Tying the Ratios Together The DuPont equation shows the relationships among management, debt management, and produir ration Management conse the DuPont equation to always of improving the performance. Its ROE-Profit margin Total resowe Equity multiple Rationalis is important to understand and interpret financial statements, however, sound financial analysilves more than just calculating and interpreting numbers Qualitative actions inued to be considered de Feedback Correct Quantitative Problem: Bosnan Industries 2018 and 2017 balance sheets and income statements are shown below 2018 2011 Assets Cash and is Account 5730 Total current Net plant and equipment Total $2.710 $2.13 bles de Accounts payable 50 Nous payable Totalrent Long-term debe $20 Common stock Retained anos 700 Total Tales and out $2.710 Income Statements: 2017 2018 $2.000 L.IS 1.000 Coerating costs excluding depreciation ADA , Depreciation and amortization EBIT 75 9423 ET Taxes (40%) Natcome 235 $220 Dividends paid Addition to retained cargo $300 Sharescutstanding 100 $22.50 10.00% What is the firm's 2018 current ratio Do not round intermediate calculations. Round your answer to two decimal places 2.12 Show All Feedback of the industry se debt-to-sets the Roman creditorshower Cushion than indicated by the industry What is the firm's 2018 net profit margin? Do not round intermediate calculations. Round your answer to four decimal places. Show All Feedback If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-assets ratio might be one reason for its high profit margin. True What is the firm's 2018 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places. Show All Feedback Using the DuPont equation, what is the firm's 2018 ROE? Do not round intermediate calculations. Round your answer to two decimal places. |