2. There are ten ratios identified in the class project ratio analysis problem in part a. In comparing your answers with the industry average, discuss in detail if the ratio is better or worse than the industry average for the fictional company. If a ratio is higher or lower than the industry average does not necessarily mean that the company is performing better or worse, respectively, to the industry. Develop a table as follows and use the company ratios that were solved with the ratio analysis problem for Lozano Ratios. Better or worse Ratio CACL DSO COGS/Inventory Sales/FA Sales/TA NI/Sales NI/TA NI/common equity Total debtTA Total liabilities/TA Lozano Ratios 2.41 76.65 days 5.57 3.54 1.75 1.46% 2.56% 4,10% 11.67% 37.69% Industry Average 20 35.0 days 6.7 12.1 3.0 1.2% 3.6% 9.0% 10.0% 60.0% the roti You should discuss the status of the ratio (better or worse than industry) by identifying the ratio and writing a detailed discussion of what makes the ratio better or worse. (30 points: one point for each designation of better or worse and two points for each discussion for each of the ten ratios) 3. In part b, the ratio analysis problem addresses ROE. Discuss the following. a. Is a higher or lower ROE good? b. What can a firm do to change ROE? c. How good is ROE as a metric in explaining stock price? d. Discuss share repurchases of stock relative to paying dividends and the effect on ROE e. Steps that a firm can take to improve collection policy. Discussion should include (1) tradeoff between collection policy and sales and 42) the effects of slow collections on free cash flow (FCF). Identify at least three profitability ratios and discuss the role of profit as a metric in measuring company performance. Why do we not seek to maximize profit when discussing the role of a firm? Since higher profits are related to higher stock prices, what can a firm do to increase profits