$-12)$ Comprehensive Ratio Calculations

The Kretovich Company had a quick ratio of $1\mathrm{.}4,$ a current ratio of $3\mathrm{.}0,$ a

days' sales outstanding of $36\mathrm{.}5$ days $($based on a $365-$day year$),$ total current

assets of $$810,000,$ and cash and marketable securities of $$120,000.$ What

were Kretovich's annual sales?

Comprehensive Ratio Analysis

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.