Data for Lozano Chip Company and its industry averages follow.

a. Calculate the indicated ratios for Lozano.
b. Construct the extended DuPont equation for both Lozano and the industry.
c. Outline Lozano's strengths and weaknesses as revealed by your analysis.

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Lozano Chip Company: Balance Sheet as of December 31, 2015 (Thousands of Dollars) Cash Receivables Inventories $225,000 Accounts payable 1575,000 Notes payable 1,125,000 Other current liabilities S601,866 326,634 Total current assets $2,950,000 Total current liabilities 1,453,500 1,068,750 1,752,750 $4,275,000 Total liabilities and equity 4,275,000 Net fixed assets 1,350,000 Long-term debt Common equity Total assets Lozano Chip Company: Income Statement for Year Ended December 31, 2015 (Thousands of Dollars) Sales Cost of goods sold Selling, general, and administrative expenses $7,500,000 6,375,000 Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income 300,000 111,631 $ 188,369 75,348 113,022 Industry Average Ratio Current assets/Current liabilities Days sales outstanding (365-day year) COGS/nventory Sales/Fixed assets Sales/Total assets Net income/Sales Net income/Total assets Net income/Common equity Total debt/Total assets Total liabilities/Total assets Lozano 35.0 days 6.7 12.1 1.2% 35% 9.0% 30.0% 60.0%