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

Balance Sheets:
	2018	2017
Cash and equivalents	$90	$75
Accounts receivable	275	300
Inventories	375	350
Total current assets	$740	$725
Net plant and equipment	2,000	1,490
Total assets	$2,740	$2,215
Accounts payable	$150	$85
Accruals	75	50
Notes payable	140	165
Total current liabilities	$365	$300
Long-term debt	450	290
Common stock	1,225	1,225
Retained earnings	700	400
Total liabilities and equity	$2,740	$2,215

Income Statements:
	2018	2017
Sales	$2,000	$1,500
Operating costs excluding depreciation	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%

a. What is the firms 2018 current ratio? Round your answer to two decimal places.??

b.What is the firms 2018 net profit margin? Round your answer to four decimal places? %

c.What is the firms 2018 price/earnings ratio? Round your answer to two decimal places.

d.Using the DuPont equation, what is the firms 2018 ROE? Round your answer to two decimal places. %

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