Question

Data for Lozano Chip Company and its industry averages follows (answers questions and show work): I was provided with the answers to the question and need the supporting work and formulas. Show work and formulas.

Balance Sheet in Thousands of dollars

cash $225,000 Accounts Payable $601,866

receivables 1,575,000 Notes payable 326, 634

inventories 1,125,000 other current liabilituies 525,000

total current assets 2,950,000 total current liabilities 1,453,500

net fixed assets 1,350,000 long term debt 1,068,750

common equity 1,752,750

Total Assets 4,275,000 total liabilities and equity 4,275,000

Income Statement in Thousands of Dollars

Sales 7,500,000

Costs of goods sold 6,375,000

selling general and admin expen 825,000

Earnings before taxes (EBT) 188,369

Federal and State Taxes (40%) 75,348

Net Income 113,022

a. calculate the indicated ratios for Lorzano---answers are: current ratio = 2.01, DSO = 77 days, INV TO = 5.67, FA turnover = 5.56, TA turnover = 1.75, PM = 1.5%, ROA = 2.6%, ROE = 6.4%, debt ratio = 33%, L/TA = 59%

Show work/formulas