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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

image text in transcribedimage text in transcribedplease 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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