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Net income is not 1.15 and total debt is not 25 if you find the correct answer I will upvote Lozano Chip Company: Balance Sheet

Net income is not 1.15 and total debt is not 25 if you find the correct answer I will upvote

image text in transcribedimage text in transcribed Lozano Chip Company: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Lozano Chip Company: Income Statement for Year Ended December 31, 2016 (Thousands of Dollars) Sales Cost of goods sold Selling, general, and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40\%) Net income $7,500,0006,375,000825,000$300,000111,631$188,36975,348$113,022 a. Calculate the indicated ratios for Lozano. 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 Lozano days Industry Average 2.0 35.0 days 6.7 12.1 3.0 1.2% 3.6% 9.0% 30.0% 60.0% *Calculation is based on a 365-day year. b. Construct the extended Du Pont equation for both Lozano and the industry. Round your answers to two decimal places. For the firm, ROE is % For the industry, ROE is % c. Outline Lozano's strengths and weaknesses as revealed by your analysis

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