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Lozano Chip Company: Balance Sheet as of December 3 1 , 2 0 1 8 ( Thousands of Dollars ) Lozano Chip Company: Income Statement

Lozano Chip Company: Balance Sheet as of December 31,2018(Thousands of Dollars)
Lozano Chip Company: Income Statement for Year Ended December 31,2018(Thousands of Dollars)
a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places.
Ratio
Current assets/Current liabilities
Days sales outstanding*
COGS/Inventory
Sales/Fixed assets
Sales/Total assets
Net income/Sales
Net income/Total assets
Net income/Common equity
Total debt/Total assets
Total liabilities/Total assets
Total liabilities/Total assets
*Calculation is based on a 365-day year.
Lozano
%
%
Industry Average
2.0
35.0 days
6.7
12.1
3.0
1.2%
3.6%
9.0%
30.0%
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
%.Lozano Chip Company: Balance Sheet as of December 31,2018(Thousands of Dollars)
Lozano Chip Company: Income Statement for Year Ended December 31,2018(Thousands of Dollars)
a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places.
Ratio
Current assets/Current liabilities
Days sales outstanding*
COGS/Inventory
Sales/Fixed assets
Sales/Total assets
Net income/Sales
Net income/Total assets
Net income/Common equity
Total debt/Total assets
Total liabilities/Total assets
Total liabilities/Total assets
*Calculation is based on a 365-day year.
Lozano
%
%
Industry Average
2.0
35.0 days
6.7
12.1
3.0
1.2%
3.6%
9.0%
30.0%
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
%.
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