What is the firm's $2014$ current ratio? Round your answer to two decimal places. Attempts

$7$: Analysis of Financial Statements: Tying the Ratios Together

Tying the Ratios Together

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 $$ Total assets turnover $$ Equity multiplier

Quantitative Problem: Rosnan Industries' $2014$ and $2013$ balance sheets and income statements are shown below.

Balance Sheets:

Cash and equivalents

Accounts receivable

Inventories

Total current assets

Net plant and equipment

Total assets

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term debt

Common stock

Retained earnings

Total liabilities and equity

The $2014$ current ratio indicates that Rosnan has sufficient $v$ current assets to meet its current obligations as they come due.

What is the firm's $2014$ total assets turnover ratio? Round your answer to four decimal places.

What is the firm's $2014$ debt$-$to$-$capital ratio? Round your answer to two decimal places.

$\%$

If the industry average debt$-$to$-$capital ratio is $30\%,$ then Rosnan's creditors have a

$|$ cushion than indicated by the industry average.

What is the firm's $2014$ 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.

What is the firm's $2014$ price$/$earnings ratio? Round your answer to two decimal places.

Using the DuPont equation, what is the firm's $2014$ ROE? Round your answer to two decimal places.