Question

Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow. Lozano Chip Company: Balance Sheet as of December 31, 2018 (Thousands of Dollars) Cash $ 235,000 Accounts payable $ 601,866 Receivables 1,575,000 Notes payable 326,634 Inventories 1,140,000 Other current liabilities 540,000 Total current assets $2,950,000 Total current liabilities $1,468,500 Net fixed assets 1,345,000 Long-term debt 1,068,750 Common equity 1,757,750 Total assets $4,295,000 Total liabilities and equity $4,295,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2018 (Thousands of Dollars) Sales Cost of goods sold Selling, general, and administrative expenses Earnings before interest and taxes (EBIT) terest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income $7,500,000 6,375,000 825,000 $ 300,000 111,631 $ 188,369 75,348 $ 113,021

Answer 1

a) is current asset / current liability 2.01 2950000 0/1468500 = Days Sales and standing CBts days in a year) Account recievebler x Number of days Total credit sale 1575000 x 365= 76.65 days 7500 000 COGs / inventory 6375000/4000 5.59 Sales/ fixed cost 01 - 7500000 1345000 5.58 5 sales / Total asset 7500000 4295000 = 1-75 Net income Sales -(8021/7500000) X100 1.5% 7 Net income / Total Asset - (113021 x 4295000) x 100 2.63% 3) Net income/common ewly (113021/1457759) Koo 6.43%

4.65 / a) Total clebt / Total Asset (631866** 326624+1068959) 42995ooo x 100 = 2562% 10) Total (rabilities / Total assets 4945000/ (468500+1068750) 59.071 42995ooo *100 b) Du Pont ROE = Asset Tumover X Netprofit margin x Equity multipher Lozano Net income Х Sales Average Estal asset "Ang Total asset Average conon stola Revenue 4295000 1.58 1.750 1357750 For the tim Gol 6.41 Inaustry for the indsa) 1.2x 3 x 2.57 9 The ceptions for selection in c part are not available. So numbers above identitred do it by falling the thank you.ro