Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.

Balance Sheets:
	2018	2017
Cash and equivalents	$110	$95
Accounts receivable	275	300
Inventories	375	350
Total current assets	$760	$745
Net plant and equipment	2,000	1,490
Total assets	$2,760	$2,235
Accounts payable	$150	$85
Accruals	75	50
Notes payable	160	185
Total current liabilities	$385	$320
Long-term debt	450	290
Common stock	1,225	1,225
Retained earnings	700	400
Total liabilities and equity	$2,760	$2,235

Income Statements:
	2018	2017
Sales	$2,000	$1,500
Operating costs excluding depreciation	1,250	1,000
EBITDA	$750	$500
Depreciation and amortization	100	75
EBIT	$650	$425
Interest	62	45
EBT	$588	$380
Taxes (40%)	235	152
Net income	$353	$228
Dividends paid	$53	$48
Addition to retained earnings	$300	$180
Shares outstanding	100	100
Price	$25.00	$22.50
WACC	10.00%

What is the firms 2018 current ratio? Round your answer to two decimal places. _______________

The 2018 current ratio indicates that Rosnan has sufficient or insufficient current assets to meet its current obligations as they come due. What is the firms 2018 total assets turnover ratio? Round your answer to four decimal places. ______________

Given the 2018 current and total assets turnover ratios calculated above, if Rosnans 2018 quick ratio is 1.0 then an analyst might conclude that Rosnans fixed assets are managed efficiently or inefficiently. What is the firms 2018 debt-to-capital ratio? Round your answer to two decimal places. % _______________________

If the industry average debt-to-capital ratio is 30%, then Rosnans creditors have a smaller or bigger cushion than indicated by the industry average. What is the firms 2018 profit margin? Round your answer to two decimal places. % _______________________

If the industry average profit margin is 12%, then Rosnans lower than average debt-to-capital ratio might be one reason for its high profit margin. True or False.

What is the firms 2018 price/earnings ratio? Round your answer to two decimal places. _______________________

Using the DuPont equation, what is the firms 2018 ROE? Round your answer to two decimal places. % _______________________