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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 120 105

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Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 120 105 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 770 $ 755 Net plant and equipment 2,000 1,490 Total assets $2,770 $2,245 Accounts payable $ 150 $ 85 Accruals 75 50 Notes payable 170 195 Total current liabilities $ 395 $ 330 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,770 $2,245 Income Statements: 2019 2018 Sales $1,885 $1,425 Operating costs excluding depreciation 1,250 1,000 EBITDA $ 635 $ 425 Depreciation and amortization 100 75 EBIT $ 535 $ 350Income Statement: 2D19 2(115 Sales $1,335 $1,425 Operating costs excluding depreciation 1,250 1,000 EBI'TDA $ 535 $ 425 Depreciation and amortization 1m] 75 EBIT s s Interest 63 4E EBT s? 1;? Taxes {25%} 113 :r's Net income $E s Dividends paid 1: 54 $ 48 Addition to retained earnings $1 Bill] $ 180 Shares outstanding 1m] 100 Price $25.00 $22.50 WACC 10.00 \"Hi: What is the rm's 2D19 current ratio? Round your answer to two decimal places. The 2019 current ratio indicates that Rosnan has current assets to meet its current obligations as they come due. what is the rm'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 xed assets are managed . What is the rm's 2019 debt-to-capital ratio? Round your answer to two decimal places. \"it: If the industry average debt-to-capital ratio is 30%, then Rosnan's creditors have a cushion than indicated by the industry average. What is the rm's 2019 prot margin? Round your answer to two decimal places. "2% If the industry average prot margin is 12%. then Rosnan's lower than average debt-to-capital ratio might be one reason for its high prot margin. What is the rm's 2019 prioefearnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the rm's 2019 ROE? Round your answer to two decimal places. | | %

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