Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance sheets: 2018 2017 $110 $95 300 275 375 -350 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $760 2,000 $745 1,490 $2,760 $2,235 $150 $85 75 50 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities 160 185 $385 $320 450 290 TRE $835 Ti $610 1,225 1,225 700 400 Common stock Retained earings Total.common equity Total liabilities and equity $1,925 $1,625 $2,760 $2,235 Income Statements: 2018 2017 Sales $1,500 $2,000 1,250 Operating costs excluding depreciation EBITDA Depreciation and amortizations 1,000 $500 $750 100 75 EBIT $650 $425 45 Interest EBT $3801 Taxes (40%) Net income 62 $588 235 $353 152 $228 Dividends paid Addition to retained earnings $53 $48 $300 $180 Shares outstanding Price 100 100 $22.50 WACC $25.00 10.00% Ch 07: Blueprint Problems 700 400 $1,925 Retained earnings Total common equity Total liabilities and equity $1,625 $2,235 $2,760 Income Statements: 2018 2017 $2,000 1,250 $750 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT $1,500 1,000 $500 75 100 $650 $425 62 45 Interest $588 $380 152 235 EBT Taxes (40%) Net income $353 $228 $53 $48 Dividends paid Addition to retained earings N$180 $300 100 100 Shares outstanding Price $25.00 $22.50 WACC 10.00% What is the firm's 2018 current ratio? Do not round intermediate calculations. Round your answer to two decimal places. If the industry average debt-to-assets ratio is 30%, then Rosnan's creditors have a -Select- cushion than indicated by the industry average. What is the firm's 2018 net profit margin? Do not round intermediate calculations. Round your answer to four decimal places. % 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. -Select- v What is the firm's 2018 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2018 ROE? Do not round intermediate calculations. Round your answer to two decimal places. %