The Morris Corporation has $800,000 of debt outstanding, and itpays an interest rate of 10% annually. Morris's annual sales are $4million, its average tax rate is 30%, and its net profit margin onsales is 3%. If the company does not maintain a TIE ratio of atleast 5 to 1, its bank will refuse to renew the loan and bankruptcywill result. What is Morris's TIE ratio? Do not round intermediatecalculations. Round your answer to two decimal places.

Balance Sheet Analysis Complete the balance sheet and sales information in the tablethat follows for J. White Industries using the following financialdata: Total assets turnover: 2 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales =24% Total liabilities-to-assets ratio: 55% Quick ratio: 0.75 Days sales outstanding (based on 365-day year): 36.5 days Inventory turnover ratio: 5.0 Do not round intermediate calculations. Round your answers tothe nearest whole dollar. Partial Income Statement Information Sales $   Cost of goods sold $   Balance Sheet Cash $   Accounts payable $   Accounts receivable    Long-term debt   50,000 Inventories    Common stock    Fixed assets    Retained earnings   100,000 Total assets $  400,000 Total liabilities and equity $   Analysis of Financial Statements: Tying the RatiosTogether The DuPont equation shows the relationships among assetmanagement, debt management, and-Select-liquiditymarketprofitabilityCorrect 1 of Item 1 ratios.Management can use the DuPont equation to analyze ways of improvingthe firm's performance. Its equation is: Ratio analysis is important to understand and interpretfinancial statements; however, sound financial analysis involvesmore than just calculating and interpreting numbers.-Select-QuantitativeQualitativeForeignCorrect 2 of Item 1 factorsalso need to be considered. Quantitative Problem: Rosnan Industries' 2018and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents $60   $45   Accounts receivable 275   300   Inventories 375   350         Total current assets $710   $695   Net plant and equipment 2,000   1,490   Total assets $2,710   $2,185   Accounts payable $150   $85   Accruals 75   50   Notes payable 110   135         Total currentliabilities $335   $270   Long-term debt 450   290   Common stock 1,225   1,225   Retained earnings 700   400   Total liabilities and equity $2,710   $2,185   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%      What is the firm’s 2018 current ratio? Round your answer to twodecimal places. If the industry average debt-to-total-assets ratio is 30%, thenRosnan’s creditors have a -Select-smallerbiggerCorrect 1 of Item 3cushion than indicated by the industry average. What is the firm’s 2018 net profit margin? Round your answer tofour decimal places. % If the industry average profit margin is 12%, then Rosnan’slower than average debt-to-total-assets ratio might be one reasonfor its high profit margin. -Select-TrueFalseCorrect 1 of Item 4 What is the firm’s 2018 price/earnings ratio? Round your answerto two decimal places. Using the DuPont equation, what is the firm’s 2018 ROE? Roundyour answer to two decimal places. %