Question
Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of
Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 240,000 Accounts payable $ 600,000 Receivables 1,575,000 Notes payable 100,000 Inventories 1,130,000 Other current liabilities 525,000 Total current assets $2,945,000 Total current liabilities $1,225,000 Net fixed assets 1,325,000 Long-term debt 400,000 Common equity 2,645,000 Total assets $4,270,000 Total liabilities and equity $4,270,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2019 (Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6,375,000 Selling, general, and administrative expenses 915,000 Earnings before interest and taxes (EBIT) $ 210,000 Interest expense 40,000 Earnings before taxes (EBT) $ 170,000 Federal and state income taxes (25%) 42,500 Net income $ 127,500 Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started