Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $80 275 375 $730 2,000 $2,730 $150 75 130 $355 450 1,225 700 $2,730 $65 300 350 $715 1,490 $2,205 $85 50 155 $290 290 1,225 400 $2,205 Income Statements: Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income Dividends paid Addition to retained earnings Shares outstanding Price WACC 2018 $2,000 1,250 $750 100 $650 62 $588 235 $353 $53 $300 100 $25.00 10.00% 2017 $1,500 1,000 $500 75 $425 45 $380 152 $228 $48 $180 100 $22.50 What is the firm's 2018 current ratio? Round your answer to two decimal places. 2.06 Show All Feedback If the industry average debt-to-total-assets ratio is 30%, then Rosnan's creditors have a bigger cushion than indicated by the industry average. What is the firm's 2018 net profit margin? Round your answer to four decimal places. 37.5 Show All Feedback If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-total-assets ratio might be one reason for its high profit margin. True What is the firm's 2018 price/earnings ratio? Round your answer to two decimal places. 8.33 Show All Feedback Using the DuPont equation, what is the firm's 2018 ROE? Round your answer to two decimal places. 43.85 1% Show All Feedback