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The Dupont equation shows the relationships among asset management, debt management, and ratios. Management can use the Dupont equation to analyze ways of improving the

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The Dupont equation 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: ROE = Profit margin Total assets turpover Equity multiplier Ratio analysis is important to understand and interpret financial statements; however, sound financial analysis invelves more than just calculating and interpreting numbers. factors aiso need to be considered. SThew AII Peediank Quantitative Problem: Rosnan industries' 2018 and 2017 balance sheets and income statements are shown below: Quantitative Probleme Resnan Industries' 2018 and 2017 balance sheets and incorne statements are-shown below. Income Statements: Income Statements: What is the firm's 2018 current ratio? Round your answer to two decimal places: What is the firm's 2018 current ration hlound your answer to two decimal places: The 2018 curfent ratio indicates that Rosnan has current assets to meet is current obligations as they come due. What is the firms 2018 total assets turnover ratio? Aound your answer to four decimal places. Given the 2018 current and total assets turnover ratios calculated above, if fosnan's 2018 ruick rotio is 1.0 then an analyst might conclude that heinan's fixed assets are managi What is the firm's 2018 debt-to-copital ratio? Alound your answer to two decimal places. (3) If the industry average debe-to-capitai ratio is 30s, then flosnan's credrors have a cushien than indicated by the industry average. What is the firm's 2018 profit margin? found your answer to two decimal places. If the induntry ayerage dest-to-captal ratio is 30%, then Aosnaris creditors have a cushion than indicated by the industry average: What is the firm's 2018 prefit margin? Found your answer to two decimal places. (1) 4 Show All feeditack If the industry average profit margin is 124 is then Rosnan's lower than average debt-to-capital ratio might be one reason for its high profit margin, What is the firm's 2018 price/earnings ratio? Round your answer to two decimal places. Using the Dupont equation, what is the fifm's 2018 ROE? Round your answer to two decimal places. (3)

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