Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 $ $ 65 80 275 375 300 350 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 730 2,000 $2,730 $ 715 1,490 $2,205 $ $ 150 75 130 85 50 155 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 355 450 $ 290 290 1,225 700 $2,730 1,225 400 $2,205 2019 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT $1,885 1,250 $ 635 100 2018 $1,425 1,000 $ 425 75 $ 350 46 $ 535 63 Interest 100 $ 535 63 Depreciation and amortization EBIT Interest EBT Taxes (25%) Net Income 75 $ 350 46 $ 304 76 $ 472 118 $ 354 $ 228 Dividends paid Addition to retained earnings $ 54 $ 48 $ 300 $ 180 100 Shares outstanding Price WACC 100 $25.00 $22.50 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. 9% 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 pront 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. % ratios. Management can use the market The DuPont equation shows the relationships among asset management, debt management, an v Select liquidity DuPont equation to analyze ways of improving the firm's performance. Its equation is: profitability ROE = Profit margin x Total assets turnover x Equity multiplier d Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and Interpreting numbers. Select factors also need to be considered. Quantitative Problemi Rosnan tudustries 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents 00 5 65 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 730 $ 715 Net plant and equipment 2,000 1,490 Total assets 52,730 52,205 1 Accounts payable 5 150 $ 85 Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers -Select- factors also need to be considered. Quantotive Quantitative Probli Qualitative istries' 2019 and 2018 balance sheets and income statements are shown below. Foreign Balance Sheets: 2019 2018 Cash and equivalents $ 80 $ 65 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 730 $ 715 Net plant and equipment 2,000 1,490 Total assets $2,730 $2,205 Accounts payable $ 150 $ B5 The 2019 current ratio indicates that Rosnan ha -Select- current assets to meet its current obligations as they come due. Insuficient What is the firm's 2019 total assets turnover rat sufficient 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 d What is the firm's 2019 debt-to-capital ratio? Round your answer to two 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 manage -Select- efficiently What is the firm's 2019 debt-to-ca Inefficiently id 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. ushion than indicated by the Industry average. If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have Select- maler What is the firm's 2019 profit margin? Round your answer to two decimal places. bloger 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 ted 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 True firm's 2019 price/earnings ratio? Round your answer to two decimal places. False Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places. 96
