The DuPont equation shows the relationships among asset management, debt management, an of improving the firm's performance. Its equation is: Select ratios. Management can use the DuPont equation to analyze ways profnasty Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers et factors also need to be considered. Quantitative Problemi Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 580 275 300 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 350 $730 2,000 $2.710 5715 1.490 2.205 $150 585 130 Labies and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total abilities Common stock $355 $290 450 1805 1,225 700 $580 1,225 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' 2018 and 2017 balance sheets and income statements are shown below. Foreign Balance Sheets: 2018 2017 $65 $80 275 300 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 375 $730 2.000 $2,730 350 $715 1,490 $2,205 $150 130 $355 450 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $85 so 155 $290 290 $580 1,225 400 $1,625 $2,205 $805 1,225 700 $1.925 $2,730 Income Statements: 2018 2017 $1,500 1,000 $500 $2,000 1,250 $750 100 $650 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT 75 $425 Income Statements: 2018 $2,000 2017 $1,500 1,000 $500 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income 1,250 $750 100 $650 $425 $380 $588 235 $353 $228 Dividends paid Addition to retained earnings $53 $300 $48 $180 Shares outstanding Price WACC 100 $25.00 10.00% 100 $22.50 What is the firm's 2018 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 Dcushion than indicated by the industry average. What is the firm's 2018 net profit margin? Do not round intermediate calculations. Round your answer to four decimal places. 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- What is the firm's 2018 price/earnings ratio? Do not round intermediate calculations. Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2018 ROE? Do not round intermediate calculations. Round your answer to two decimal places. What is the firm's 2018 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 select cushion than indicated by the industry average. What is the firm's 2018 net profit margin? Do not round intermediate calculations. Round your answer to four decimal places. 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. What is the firm's 2018 price/earnings ratio? Do not round Intermediate calculations. Round your answer to two decimal places Using the DuPont equation, what is the firm's 2018 ROE? Do not round Intermediate calculations. Round your answer to two decimal places. What is the firm's 2018 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 cushion than indicated by the industry average. What is the firm's 2018 net profit margin? Do not round intermediate calculations. Round your answer to four decimal places. 9 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. True False firm's 2018 price/earnings ratio? Do not round Intermediate calculations. Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2018 ROE? Do not round intermediate calculations, Round your answer to two decimal places