Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below.

Balance Sheets
	2020	2019
Assets
Cash and equivalents	$70	$55
Accounts receivable	275	300
Inventories	375	350
Total current assets	$720	$705
Net plant and equipment	2,000	1,490
Total assets	$2,720	$2,195
Liabilities and Equity
Accounts payable	$150	$85
Accruals	75	50
Notes payable	120	145
Total current liabilities	$345	$280
Long-term debt	450	290
Total liabilities	$795	$570
Common stock	1,225	1,225
Retained earnings	700	400
Total common equity	$1,925	$1,625
Total liabilities and equity	$2,720	$2,195

Income Statements
	2020	2019
Sales	$2,000	$1,500
Operating costs excluding depreciation and amortization	1,250	1,000
EBITDA	$750	$500
Depreciation and amortization	100	75
EBIT	$650	$425
Interest	62	45
EBT	$588	$380
Taxes (40%)	235	152
Net income	$353	$228
Dividends paid	$53	$48
Addition to retained earnings	$300	$180
Shares outstanding	100	100
Price	$25.00	$22.50
WACC	10.00%

What is the firm's 2020 current ratio? Do not round intermediate calculations. Round your answer to two decimal places.

If the industry average debt-to-assets ratio is 30%, then Rosnan's creditors have a -Select-smallerbiggerCorrect 1 of Item 3 cushion than indicated by the industry average. What is the firm's 2020 net profit margin? Do not round intermediate calculations. Round your answer to two decimal places.

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If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-assets ratio might be one reason for its high profit margin. -Select-TrueFalseCorrect 1 of Item 4

What is the firm's 2020 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Using the DuPont equation, what is the firm's 2020 ROE? Do not round intermediate calculations. Round your answer to two decimal places.

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