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Quantitative Problem: Rosnan Industries' 2 0 1 9 and 2 0 1 8 balance sheets and income statements are shown below. [ [ , Balance
Quantitative Problem: Rosnan Industries' and balance sheets and income statements are shown below. Balance Sheets,setsash and equivalents,, Quantitative Problem: Rosnan Industries' and balance sheets and income statements are shown below.
Balance Sheets:
Sales
Income Statements:
Operating costs excluding depreciation
EBITDA
Depreciation and amortization
EBIT
Interest
EBT What is the firm's current ratio? Round your answer to two decimal places.
The current ratio indicates that Rosnan has
current assets to meet its current obligations as they come due.
What is the firm's total assets turnover ratio? Round your answer to four decimal places.
Given the current and total assets turnover ratios calculated above, if Rosnan's quick ratio is then an analyst might conclude that Rosnan's fixed assets are
managed
What is the firm's debttocapital ratio? Round your answer to two decimal places.
If the industry average debttocapital ratio is then Rosnan's creditors have a
cushion than indicated by the industry average.
What is the firm's profit margin? Round your answer to two decimal places.
If the industry average profit margin is then Rosnan's lower than average debttocapital ratio might be one reason for its high profit margin. If the industry average profit margin is then Rosnan's lower than average debttocapital ratio might be one reason for its high profit margin. True
What is the firm's priceearnings ratio? Round your answer to two decimal places.
Using the DuPont equation, what is the firm's ROE? Round your answer to two decimal places.
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