The DuPont equation shows the relationships among asset management, debt management, and profitability : ratios. Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is: ROE = Profit margin 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. Qualitative factors also need to be considered Bide Feedback Correct Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 110 $ 95 Accounts receivable 275 300 Inventories 350 Total current assets $ 760 $ 745 Net plant and equipment 2,000 1,490 Total assets $2,760 $2,235 375 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $ 150 75 160 $385 450 1,225 700 $2,760 $ 85 50 185 $ 320 290 1,225 400 $2,235 Common stock Retained earnings Total liabilities and equity Income Statements: 1,225 1,225 700 400 $2,760 $2,235 2019 2018 $1,885 1,250 $ 635 $1,425 1,000 $ 425 75 100 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income $ 350 46 $ 535 63 $ 472 118 $ 354 $ 304 76 $ 228 Dividends paid Addition to retained earnings $ 54 $ 300 $ 48 $ 180 Shares outstanding Price WACC 100 100 $25.00 $22.50 10.00 % What is the firm's 2019 current ratio? Round your answer to two decimal places. 2.12 Realize that information will come from firm's balance sheet. Make sure that you use 2019 data and not 2018 data. The 2019 current ratio indicates that Rosnan has sufficient 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. 0.7702 Hide Feedback Partially Correct Check My Work Feedback Review the total assets turnover ratio definition and equation. Realize that information will come from both the firm's balance sheet and income statement Make sure that you use 2019 data and not 2018 data. Given the 2019 current and total assets turnover ratlos calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed inefficiently : What is the firm's 2019 debt-to-capital ratio? Round your answer to two decimal places