Keystone Resources has a net profit margin of 9 percent and earnings after taxes of $2.0...

  

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Keystone Resources has a net profit margin of 9 percent and earnings after taxes of $2.0 million. Its current balance sheet is as follows: Current assets Fixed assets Total assets $7,000,000 Current liabilities 10,000,000 Long-term debt $17,000,000 Common stock Retained earnings Total liabilities and stockholders' equity $3,500,000 5,600,000 2,800,000 5,100,000 $17,000,000 a. Calculate Keystone's return on stockholders' equity. Round your answer to two decimal places. b. Industry average ratios are Net profit margin Total asset turnover Equity multiplier 10% 1.0 times 1.1 times Compare Keystone's net profit margin, total asset turnover, and equity multiplier to these averages. Round your answers to two decimal places. c. Keystone has inventories of $3.1 million. Compute the firm's quick ratio. Round your answer to two decimal places. Keystone Resources has a net profit margin of 9 percent and earnings after taxes of $2.0 million. Its current balance sheet is as follows: Current assets Fixed assets Total assets $7,000,000 Current liabilities 10,000,000 Long-term debt $17,000,000 Common stock Retained earnings Total liabilities and stockholders' equity $3,500,000 5,600,000 2,800,000 5,100,000 $17,000,000 a. Calculate Keystone's return on stockholders' equity. Round your answer to two decimal places. b. Industry average ratios are Net profit margin Total asset turnover Equity multiplier 10% 1.0 times 1.1 times Compare Keystone's net profit margin, total asset turnover, and equity multiplier to these averages. Round your answers to two decimal places. c. Keystone has inventories of $3.1 million. Compute the firm's quick ratio. Round your answer to two decimal places.