The DuPont equation shows the relationships among asset management, debt management, and profitabilityration Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is ROB-Profit marcia x Total turnover quity multiplier Rate analysis important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers Quantitative factors also need to be considered Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 80 $ 65 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 730 $ 715 Net plant and equipment 2,000 1,490 Total assets $2,730 $2,205 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 150 $ 85 75 50 130 155 $ 355 $ 290 450 290 1,225 1,225 700 400 $2,730 $2,205 2018 Sales 2019 31,885 1,250 $635 100 $ 535 $1,425 1,000 $425 75 Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net Income 63 $ 350 46 $ 304 76 $ 472 118 $ 354 $ 228 s 54 $ 48 Dividends paid Addition to retained earnings $300 $ 180 Income Statements: 2019 2018 Sales $1,425 1,000 $ 425 $1,885 1,250 $ 635 100 $ 535 63 $ 472 Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income 75 $ 350 46 $ 304 118 76 $ 354 $ 228 Dividends paid Addition to retained earnings $ 48 $ 54 $ 300 $ 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. The 2019 current ratio indicates that Rostan has Select current assets to meet its current obligations as they come due What is the firm's 2019 total assets turnover ratlo? Round your answer to four decimal places. Given the 2019 current and total assets tumover ratios calculated above, If Roxan's 2019 quick ratio is 1.0 then an analyst might conclude that Ronany's fixed assets are managed select What is the firm's 2019 debt-to-capita ratio Hound your answer to two decimal places If the industry average debt-to-capital ratio is 30%, then Rosan's creditors have incy 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. Se What is the firm's 2015 price/earnings ratio7 Round your answer to two decimal places Using the DuPont equation, what is the firm's 2019 ROERound your answer to two decimal places The DuPont equation shows the relationships among asset management, debt management, and profitabilityration Management can use the DuPont equation to analyze ways of improving the firm's performance. Its equation is ROB-Profit marcia x Total turnover quity multiplier Rate analysis important to understand and interpret financial statements; however, sound financial analysis involves more than just calculating and interpreting numbers Quantitative factors also need to be considered Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 2018 Cash and equivalents $ 80 $ 65 Accounts receivable 275 300 Inventories 375 350 Total current assets $ 730 $ 715 Net plant and equipment 2,000 1,490 Total assets $2,730 $2,205 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 150 $ 85 75 50 130 155 $ 355 $ 290 450 290 1,225 1,225 700 400 $2,730 $2,205 2018 Sales 2019 31,885 1,250 $635 100 $ 535 $1,425 1,000 $425 75 Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net Income 63 $ 350 46 $ 304 76 $ 472 118 $ 354 $ 228 s 54 $ 48 Dividends paid Addition to retained earnings $300 $ 180 Income Statements: 2019 2018 Sales $1,425 1,000 $ 425 $1,885 1,250 $ 635 100 $ 535 63 $ 472 Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income 75 $ 350 46 $ 304 118 76 $ 354 $ 228 Dividends paid Addition to retained earnings $ 48 $ 54 $ 300 $ 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. The 2019 current ratio indicates that Rostan has Select current assets to meet its current obligations as they come due What is the firm's 2019 total assets turnover ratlo? Round your answer to four decimal places. Given the 2019 current and total assets tumover ratios calculated above, If Roxan's 2019 quick ratio is 1.0 then an analyst might conclude that Ronany's fixed assets are managed select What is the firm's 2019 debt-to-capita ratio Hound your answer to two decimal places If the industry average debt-to-capital ratio is 30%, then Rosan's creditors have incy 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. Se What is the firm's 2015 price/earnings ratio7 Round your answer to two decimal places Using the DuPont equation, what is the firm's 2019 ROERound your answer to two decimal places