Times-Interest- Ea rned Ratio The Forris Corporation has $450,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $1.8 million, its average tax rate is 35%, and its net profit margin on sales is 4%. If the company does not maintain a TIE ratio of at least 6 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places. Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J. Whit Industries using the following financial data: Total assets turnover: 2.7 25% Gross profit margin on sales: (Sales -Cost of goods sold)/Sales Total liabilities-to-assets ratio: 60% Quick ratio: 0.75 Days sales outstanding (based on 365-day year): 31 days Inventory turnover ratio: 7.0 Do not round intermediate calculatfons. Round your answers to the nearest whole dollar. Partial Income Statement Information Sales $ Cost of goods sold $ Balance Sheet Accounts payable Cash $ 50,000 Accounts receiva ble Long-term debt Inventories Common stock Fixed assets Retained earnings 100,000 Total assets $ 400,000 Total liabilities and equity Cne Analysis of Financial Statements: Tying the Ratios Together The DuPont equation shows the relationships among asset management, del management, an -Select- liquidity market ratios. Management can use the DuPont equ analyze ways of i m's performance. Its equation is: profitability =rront margin x Total assets turnover x Equity multiplier ROE Ratio analysis is important to underst SOund E 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. Select Quantitative Qualitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income Foreign Balance Sheets: 2018 2017 $70 $55 Cash and equivalents 275 300 Accounts receivable 375 350 Inventories $720 $705 Total current assets 2,000 1,490 Net plant and equipment $2,720 $2,195 Total assets Accounts payable $150 $85 Accruals 75 50 Notes payable 120 145 Total current liabilities $345 $280 Long-term debt 290 450 Common stock 1,225 1,225 Retained earningsT 700 400 Total liabilities and equity $2,720 $2,195 Income Statements: 2018 2017 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 BIT $650 $425 Interest 62 45 T $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained earnings $300 $180 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00% What is the firm's 2018 current ratio? Round your answer to two decimal places. If the industry average debt-to-total-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? Round your answer to four decimal places. 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- What is the firm's 2018 price/earnings ratio? Round your answer to two decimal places. Using the Du Pont uation, what is the firm's 2018 ROE? Round your answer to two decimal places. %