Construct the extended DuPont equation for both Lozano and the industry.

The given Ratios:

Lozano (The Firm)

CA / CL: 2.01

Days sales Outstanding: 76.65

COGS/Inventory: 5.67

Sales/Fixed Assets: 5.56

Sales/ Total Assets: 1.75

Net Income/Sales: 1.51%

Net Income/Total Assets: 2.64

Net Income/Common Equity: 6.45

Total Debt/Total Assets: 25%

TL /TA: 59%

Industry Average

CA / CL: 2.0

Days sales Outstanding: 35.0

COGS/Inventory: 6.7

Sales/Fixed Assets: 12.1

Sales/ Total Assets: 3.0

Net Income/Sales: 1.2%

Net Income/Total Assets: 3.6%

Net Income/Common Equity: 9.0%

Total Debt/Total Assets: 30.0%

TL /TA: 60.0%

Questions:

For the Lozano (the firm), ROE is: %

For the industry, ROE is: %

Outline Lozanos Strength and weaknesses as revealed by your analysis.

**PLEASE SHOW ANY and ALL FORMULA WORK AS NEEDED, THANK-YOU!**