Quantitative Problem: Rosnan Industries' $2019$ and $2018$ balance sheets and income statements are shown below.

Balance Sheets:

$20192018$

Cash and equivalents $ $100$ $ $85$

Accounts receivable $275300$

Inventories $375350$

Total current assets $ $750$ $ $735$

Net plant and equipment $2,0001,490$

Total assets $ $2,750$ $ $2,225$

Accounts payable $ $150$ $ $85$

Accruals $7550$

Notes payable $150175$

Total current liabilities $ $375$ $ $310$

Long$-$term debt $450290$

Common stock $1,2251,225$

Retained earnings $700400$

Total liabilities and equity $ $2,750$ $ $2,225$

Income Statements:

$20192018$

Sales $ $1,885$ $ $1,425$

Operating costs excluding depreciation $1,2501,000$

EBITDA $ $635$ $ $425$

Depreciation and amortization $10075$

EBIT $ $535$ $ $350$

Interest $6346$

EBT $ $472$ $ $304$

Taxes $(25\%)11876$

Net income $ $354$ $ $228$

Dividends paid $ $54$ $ $48$

Addition to retained earnings $ $300$ $ $180$

Shares outstanding $100100$

Price $ $25\mathrm{.}00$ $ $22\mathrm{.}50$

WACC $10\mathrm{.}00\%$

What is the firm's $2019$ current ratio? Round your answer to two decimal places.

The $2019$ current ratio indicates that Rosnan has

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.

Given the $2019$ current and total assets turnover ratios calculated above, if Rosnan's $2019$ quick ratio is $1\mathrm{.}0$ then an analyst might conclude that Rosnan's fixed assets are managed

$-$Select$-$

$.$

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$-$

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$-$

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.

$\%$