The DuPont equation shows the relationships among asset management, debt management, and -Select- Aratios. Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is: ROE = Profit margin x Total assets turnover x Equity multiplier Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers. -Select- Afactors also need to be considered. Quantitative Problem: Rosnan Industries' 2014 and 2013 balance sheets and income statements are shown below. Balance Sheets: 2014 2013 $55 $70 275 300 375 350 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $720 2,000 $2,720 $705 1,490 $2,195 $150 $85 75 50 120 145 Accounts payable Accurals Notes payable Total current liabilities Long-term debt Common stock $280 $345 450 1,225 290 1,225 Common stock Retained earnings Total liabilities and equity 1,225 700 $2,720 1,225 400 $2,195 Income Statements: 2014 2013 Sales Operating costs excluding depreciation EBITDA $2,000 1,250 $1,500 1,000 $750 $500 Depreciation and amortization 100 75 $650 EBIT Interest $425 45 62 EBT $380 $588 235 Taxes (40%) 152 Net income $353 $228 Dividends paid Addition to retained earnings $53 $300 $48 $180 Shares outstanding 100 Price 100 $25.00 10.00% $22.50 WACC What is the firm's 2014 current ratio? -Select- cushion than If the industry average debt-to-total-assets ratio is 30%, then Rosnan's creditors have a indicated by the industry average. What is the firm's 2014 profit margin? If the industry average profit margin is 12%, then Rosnan's lower than average debt-to-total-assets ratio might be one reason for its high profit margin. -Select- A What is the firm's 2014 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2014 ROE? Round your answer to two decimal places