7-13 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. Lozano Chip Company: Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 225,000 Accounts payable Receivables 1.575,000 Notes payable Inventories 1.125,000 Other current liabilities Total current assets $2,925,000 Total current liabilities Net fixed assets 1,350,000 Long-term debt Common equity Total assets $4,275,000 Total liabilities and equity $ 601,866 326,634 525,000 51,453,500 1,068,750 1,752,750 $4,275,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2018 (Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6.375.000 Selling, general, and administrative expenses 825,000 Earnings before interest and taxes (EBIT) boo $ 300,000 Interest expense non sono 111,631 Earnings before taxes (EBT) $ 188,369 Federal and state income taxes (40%) siden - 75,348 Net income $ 113,021 Ratio Industry Average 2.0 Current assets/Current liabilities Days sales outstanding (365-day year) COGS/Inventory 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 35.0 days 6.7 12.1 bio 3.0 od 1.2% 3.6% 9.0% 30.0% 60.0%