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Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2018 (Thousands of
Comprehensive Ratio Analysis
Data for Lozano Chip Company and its industry averages follow.
Lozano Chip Company: Balance Sheet as of December 31, 2018 (Thousands of Dollars)
Cash | $ 235,000 | Accounts payable | $ 601,866 | |
Receivables | 1,575,000 | Notes payable | 326,634 | |
Inventories | 1,130,000 | Other current liabilities | 532,000 | |
Total current assets | $2,940,000 | Total current liabilities | $1,460,500 | |
Net fixed assets | 1,345,000 | Long-term debt | 1,068,750 | |
Common equity | 1,755,750 | |||
Total assets | $4,285,000 | Total liabilities and equity | $4,285,000 |
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 | 815,000 |
Earnings before interest and taxes (EBIT) | $ 310,000 |
Interest expense | 111,631 |
Earnings before taxes (EBT) | $ 198,369 |
Federal and state income taxes (40%) | 79,348 |
Net income | $ 119,021 |
please fill in section A & B
a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places. b. Use the extended DuPont equation to calculate ROE for both Lozano and the industry. Do not round intermediate calculations. Round your answers to two decimal places. For the firm, ROE is %. For the industry, ROE is %. a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places. b. Use the extended DuPont equation to calculate ROE for both Lozano and the industry. Do not round intermediate calculations. Round your answers to two decimal places. For the firm, ROE is %. For the industry, ROE is %
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