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 $ $ 85 $ 150 75 50 175 150 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 375 $310 450 290 1,225 1,225 700 400 $2,750 $2,225 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest 2019 $1,885 1,250 $ 635 100 $ 535 63 2018 $1,425 1,000 $ 425 75 $ 350 46 EBT Taxes (25%) Net income $ 472 $ 304 118 76 $ 354 $ 228 Dividends paid Addition to retained earnings $ 54 $ 300 $ 48 $ 180 Shares outstanding Price WACC 100 100 $25.00 $22.50 10.00 % What is the firm's 2019 current ratio? Round your answer to two decimal places. Hide Feedback Incorrect Check My Work Feedback Review the current ratio definition and equation. Realize that information will come from firm's balance sheet. Make sure that you use 2019 data and not 2018 data. The 2019 current ratio indicates that Rosnan has sufficient current assets to meet its current What is the firm's 2010 Intal eek two homework 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 condude that Rosnan's fixed assets are managed inefficiently What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places. % Hide Feedback Partially Correct Check My Work Feedback Review the debt-to-capital ratio definition and equation. Realize that information will come from the firm's balance sheet. Make sure that you use 2019 data and not 2018 data, Make sure that you include both short-term and long term debt in the numerator, cushion than indicated by the industry If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a Select average What is the firm's 2019 profit margin? Round your answer to two decimal places. % Week two homework 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. Hide Feedback Incorrect Check My Work Feedback Review the price/earnings ratio definition and equation. Reliure that information will come from the firm's income statement Make sure that you use 2019 data and not 2018 data Make sure that you calculate earnings per share correctly. Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places
