Quantitative Problem: Rosnan Industries' 2018 and 2017 balancesheets and income statements are shown below. Balance Sheets: 20182017 Cash and equivalents $80 $65 Accounts receivable 275 300Inventories 375 350 Total current assets $730 $715 Net plant andequipment 2,000 1,490 Total assets $2,730 $2,205 Accounts payable$150 $85 Accruals 75 50 Notes payable 130 155 Total currentliabilities $355 $290 Long-term debt 450 290 Common stock 1,2251,225 Retained earnings 700 400 Total liabilities and equity $2,730$2,205 Income Statements: 2018 2017 Sales $2,000 $1,500 Operatingcosts excluding depreciation 1,250 1,000 EBITDA $750 $500Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45EBT $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividendspaid $53 $48 Addition to retained earnings $300 $180 Sharesoutstanding 100 100 Price $25.00 $22.50 WACC 10.00% What is thefirm’s 2018 current ratio? Round your answer to two decimal places.If the industry average debt-to-total-assets ratio is 30%, thenRosnan’s creditors have a cushion than indicated by the industryaverage. What is the firm’s 2018 net profit margin? Round youranswer to four decimal places. % If the industry average profitmargin is 12%, then Rosnan’s lower than averagedebt-to-total-assets ratio might be one reason for its high profitmargin. What is the firm’s 2018 price/earnings ratio? Round youranswer to two decimal places. Using the DuPont equation, what isthe firm’s 2018 ROE? Round your answer to two decimal places. %