Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents $70 $55 Accounts receivable 275 300...






Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.

























































































Balance Sheets:
20182017
Cash and equivalents$70$55
Accounts receivable275300
Inventories375350
      Total current assets$720$705
Net plant and equipment2,0001,490
Total assets$2,720$2,195
Accounts payable$150$85
Accruals7550
Notes payable120145
      Total current liabilities$345$280
Long-term debt450290
Common stock1,2251,225
Retained earnings700400
Total liabilities and equity$2,720$2,195

































































































Income Statements:
20182017
Sales$2,000$1,500
Operating costs excluding depreciation1,2501,000
EBITDA$750$500
Depreciation and amortization10075
EBIT$650$425
Interest6245
EBT$588$380
Taxes (40%)235152
Net income$353$228
Dividends paid$53$48
Addition to retained earnings$300$180
Shares outstanding100100
Price$25.00$22.50
WACC10.00%



What is the firm’s 2018 current ratio? Round your answer to two decimal places.










What is the firm’s 2018 net profit margin? Round your answer to four decimal places.
%








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 ROE? Round your answer to two decimal places.
%






Jun 04, 2022
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