Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 100 $ 85 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 750 $735 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,225 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 175 Total current liabilities $375 $310 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,750 $2,225 2019 2018 Sales $1,885 $1,425 Operating costs excluding depreciation 1,250 1,000 EBITDA $ 635 $ 425 Depreciation and amortization 100 EBIT $ 535 Interest 63 75 $350 46 $304 76 EBT $ 472 Taxes (25%) 118 Net income $ 354 $ 228 Income Statements: Dividends pald 54 $ 48 Addition to retained earnings 300 $ 180 Shares outstanding 100 100 $22.50 Price WACC 10.00% What is the firm's 2019 current ratio? Round your answer to two decimal places. The 2019 current ratio indicates that Rosnan has Select 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 1.0 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. $ $ $25.00 Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 100 $ 85 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 750 $735 Net plant and equipment 2,000 1,490 Total assets $2,750 $2,225 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 175 Total current liabilities $375 $310 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,750 $2,225 2019 2018 Sales $1,885 $1,425 Operating costs excluding depreciation 1,250 1,000 EBITDA $ 635 $ 425 Depreciation and amortization 100 EBIT $ 535 Interest 63 75 $350 46 $304 76 EBT $ 472 Taxes (25%) 118 Net income $ 354 $ 228 Income Statements: Dividends pald 54 $ 48 Addition to retained earnings 300 $ 180 Shares outstanding 100 100 $22.50 Price WACC 10.00% What is the firm's 2019 current ratio? Round your answer to two decimal places. The 2019 current ratio indicates that Rosnan has Select 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 1.0 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. $ $ $25.00
