What is the firm’s 2018 current ratio? Round your answer to two decimal places. The 2018 current ratio indicates that Rosnan has -Select-insufficientsufficientCorrect 1 of Item 3 current assets to meet its current obligations as they come due. What is the firm’s 2018 total assets turnover ratio? Round your answer to four decimal places. Given the 2018 current and total assets turnover ratios calculated above, if Rosnan’s 2018 quick ratio is 1.0 then an analyst might conclude that Rosnan’s fixed assets are managed -Select-efficientlyinefficientlyCorrect 1 of Item 4. What is the firm’s 2018 debt-to-capital ratio? Round your answer to two decimal places. %
Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.
| Balance Sheets: | ||
| 2018 | 2017 | |
| Cash and equivalents | $120 | $105 |
| Accounts receivable | 275 | 300 |
| Inventories | 375 | 350 |
| Total current assets | $770 | $755 |
| Net plant and equipment | 2,000 | 1,490 |
| Total assets | $2,770 | $2,245 |
| Accounts payable | $150 | $85 |
| Accruals | 75 | 50 |
| Notes payable | 170 | 195 |
| Total current liabilities | $395 | $330 |
| Long-term debt | 450 | 290 |
| Common stock | 1,225 | 1,225 |
| 700 | 400 | |
| Total liabilities and equity | $2,770 | $2,245 |
| Income Statements: | ||
| 2018 | 2017 | |
| Sales | $2,000 | $1,500 |
| Operating costs excluding |
1,250 | 1,000 |
| EBITDA | $750 | $500 |
| Depreciation and amortization | 100 | 75 |
| EBIT | $650 | $425 |
| Interest | 62 | 45 |
| EBT | $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.
The 2018 current ratio indicates that Rosnan has -Select-insufficientsufficientCorrect 1 of Item 3 current assets to meet its current obligations as they come due.
What is the firm’s 2018 total assets turnover ratio? Round your answer to four decimal places.
Given the 2018 current and total assets turnover ratios calculated above, if Rosnan’s 2018 quick ratio is 1.0 then an analyst might conclude that Rosnan’s fixed assets are managed -Select-efficientlyinefficientlyCorrect 1 of Item 4.
What is the firm’s 2018 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 -Select-smallerbiggerCorrect 1 of Item 5 cushion than indicated by the industry average.
What is the firm’s 2018 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.
-Select-TrueFalseCorrect 1 of Item 6
What is the firm’s 2018 price/earnings ratio? Round your answer to two decimal places.
Using the DuPont equation, what is the firm’s 2018
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