Drop down 1: Insufficient, Sufficient

Drop down 2: Efficiently, Inefficiently

Drop down 3: Smaller, Bigger

Drop down 4: True, False

Balance Sheets: 2019 2018 $ $ 110 275 95 300 375 350 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 760 2,000 $2,760 $ 745 1,490 $2,235 $ 85 $ 150 75 50 185 160 $ 385 $ 320 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 450 1,225 290 1,225 400 700 $2,760 $2,235 Income Statements: 2019 2018 Sales Operating costs excluding depreciation EBITDA Depreciation and amortization EBIT $1,885 1,250 $ 635 $1,425 1,000 $ 425 75 $ 350 100 $ 535 63 46 Interest EBT $ 472 $ 304 76 118 Taxes (25%) Net income $ 354 $ 228 $ 54 $ $ 48 Dividends paid Addition to retained earnings $ 300 $ 180 Shares outstanding Price 100 100 $25.00 $22.50 10.00 % WACC What is the firm's 2019 current ratio? Round your answer to two decimal places. The 2019 current ratio indicates that Rosnan has -Select- current assets to meet its current obligations as they come due. What is the firm's 2019 total assets turnover ratio? Round your answer to four decimal places. Given the 2019 current and total assets turnover ratios calculated above, if Rosnan's 2019 quick ratio is 1.0 then an analyst might conclude that Rosnan's fixed assets are managed -Select- What is the firm's 2019 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- 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. -Select- What is the firm's 2019 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm's 2019 ROE? Round your answer to two decimal places. %