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