The DuPont eguation shows the relationships among asset management, debt management, and

$]$ ratios. Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is:

Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers.

factors also need to be considered.

Quantitative Problem: Rosnan Industries' $2019$ and $2018$ balance sheets and income statements are shown below.

Balance Sheets:

Cash and equivalents

Accounts receivable

Inventories

Total current assets

Net plant and equipment

Total assets

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term debt

Common stock

Retained earnings

Total liabilities and equity

Income Statements:

Sales

Operating costs excluding depreciation

EBITDA

Depreciation and amortization

EBIT

Interest

EBT

Taxes $(25\%)$

Net income

Dividends paid

Addition to retained earnings

Shares outstanding

Price

WACC

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 $1\mathrm{.}0$ then an analyst might conclude that Rosnan's fixed assets are managed

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

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 profit margin.

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.