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I only need help with Questions in Part B and the last to questions of Part A Thank you! a. Calculate the indicated ratios for
I only need help with Questions in Part B and the last to questions of Part A
Thank you!
a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Lozano Industry Average Current assets/Current liabilities 2.0 Days sales outstanding (365-day year) X days 35.0 days 6.7 COGS/Inventory Sales/Fixed assets 12.1 3.0 Sales/Total assets Net income/Sales 1.2% Net income/Total assets 3.6% Net income/Common equity 9.0% Total debt/Total assets 10.0% Total liabilities/Total assets 60.0% 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 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 $ 220,000 Accounts payable Receivables 1,575,000 Notes payable Inventories 1,145,000 Other current liabilities Total current assets $2,940,000 Total current liabilities Net fixed assets 1,325,000 Long-term debt Common equity Total assets $4,265,000 Total liabilities and equity $ 600,000 100,000 535,000 $1,235,000 400,000 2,630,000 $4,265,000 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 919,000 Earnings before interest and taxes (EBIT) $ 206,000 Interest expense 40,000 Earnings before taxes (EBT) $ 166,000 Federal and state income taxes (25%) 41,500 Net income $ 124,500Step by Step Solution
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