Question No 1: Balance Sheet and Income statement of Zano Chip Company (10 Marks) Data for Zano Chip Company and its industry averages follow.

a. Calculate the indicated ratios for Zano. Ratios Industry average b. Construct the extended DuPont equation for both Zano and the industry. c. Examine the ratios above and outline Zanos strengths and weaknesses as revealed by your analysis.

Question No 1: Balance Sheet and Income statement of Zano Chip Company (10 Marks) Cash Receivables Inventories Total current assets Net fixed assets $ 225.000 1.575.000 1.125.000 $2.925.000 1.350.000 Accounts payable Notes payable Other current liabilities Total current liabilities Long-term debit Common quity Total liabilities and equity $ 601,866 326.634 525.000 $1.453.500 1.068.750 1.752.750 $4,275,000 Total assets 54.275.000 Sales Cont of goods sold Selling general, and administrative experties Earnings before interest and taxes (ERIT Interest expense Earnings before taxes (ERT) Federal and state income taxes (40%) Net Income $7,500,000 6,375.000 825,000 $ 300.000 111.631 $ 18,369 75345 1113021 Data for Zano Chip Company and its industry averages follow. a. Calculate the indicated ratios for Zano. Ratios Industry average Current assets/Current liabilities 2.0 Days sales outstanding (965-day year) 350 days COGS/Inventory 6.7 Sales/Fixed assets Sales/Total assets 3.0 Ne income/Sales 1.25 Net Income Total assets 3.69 Net income Common equity 9.0% Total de total assets 30.0% Total liabilities/Totalanes 60,0% 12.1 b. Construct the extended DuPont equation for both Zano and the industry. c. Examine the ratios above and outline Zano's strengths and weaknesses as revealed by your analysis