options:

Sufficient or insufficient

efficiently or inefficiently

smaller or bigger

True or false

Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 90 $ 75 Accounts receivable 275 Inventories 375 350 Total current assets $ 740 $ 725 Net plant and equipment 2,000 1,490 Total assets $2,740 $2,215 300 $ $ 150 75 85 50 165 140 $ Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $365 450 300 290 1,225 1,225 700 $2,740 400 $2,215 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest Taxes (25%) Net income 2019 $1.885 1,250 $ 635 100 $ 535 63 2018 $ 1,425 1,000 $ 425 75 $ 350 46 $ $ 472 118 304 76 $ 354 $ 228 $ 54 $ Dividends paid Addition to retained earnings 48 180 $ 300 $ 100 100 Shares outstanding Price WACC $ 22.50 $25.00 10.00 What is the firm's 2019 current ratio? Round your answer to two decimal places. 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. V Given the 20:9 current and total assets turnover ratios calculated above, if Rosnian's 2019 quick ratio is 1.0 then at analyst might conclude that Roshan's fixed assets are managed efficiently What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. cushion than indicated by the industry average. If the industry average debt-to-capital ratio is 30%, then Rosman's creditors have a smaller What is the firm's 2019 profit margin? Round your answer to two decimal places. V Ir 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. False What is the firm's 2019 price/earnings ratic? 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. % Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 90 $ 75 Accounts receivable 275 Inventories 375 350 Total current assets $ 740 $ 725 Net plant and equipment 2,000 1,490 Total assets $2,740 $2,215 300 $ $ 150 75 85 50 165 140 $ Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $365 450 300 290 1,225 1,225 700 $2,740 400 $2,215 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest Taxes (25%) Net income 2019 $1.885 1,250 $ 635 100 $ 535 63 2018 $ 1,425 1,000 $ 425 75 $ 350 46 $ $ 472 118 304 76 $ 354 $ 228 $ 54 $ Dividends paid Addition to retained earnings 48 180 $ 300 $ 100 100 Shares outstanding Price WACC $ 22.50 $25.00 10.00 What is the firm's 2019 current ratio? Round your answer to two decimal places. 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. V Given the 20:9 current and total assets turnover ratios calculated above, if Rosnian's 2019 quick ratio is 1.0 then at analyst might conclude that Roshan's fixed assets are managed efficiently What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. cushion than indicated by the industry average. If the industry average debt-to-capital ratio is 30%, then Rosman's creditors have a smaller What is the firm's 2019 profit margin? Round your answer to two decimal places. V Ir 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. False What is the firm's 2019 price/earnings ratic? 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. %