Data for Lozano Chip Company and its industry averages follow. a. Calculate the indicated ratios for Lozano.
Question:
a. Calculate the indicated ratios for Lozano.
b. Construct the extended DuPont equation for both Lozano and the industry.
c. Outline Lozano's strengths and weaknesses as revealed by your analysis.
Transcribed Image Text:
Lozano Chip Company: Balance Sheet as of December 31, 2015 (Thousands of Dollars) Cash Receivables Inventories $225,000 Accounts payable 1575,000 Notes payable 1,125,000 Other current liabilities S601,866 326,634 Total current assets $2,950,000 Total current liabilities 1,453,500 1,068,750 1,752,750 $4,275,000 Total liabilities and equity 4,275,000 Net fixed assets 1,350,000 Long-term debt Common equity Total assets Lozano Chip Company: Income Statement for Year Ended December 31, 2015 (Thousands of Dollars) Sales Cost of goods sold Selling, general, and administrative expenses $7,500,000 6,375,000 Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income 300,000 111,631 $ 188,369 75,348 113,022 Industry Average Ratio Current assets/Current liabilities Days sales outstanding (365-day year) COGS/nventory 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 35.0 days 6.7 12.1 1.2% 35% 9.0% 30.0% 60.0%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a Dollar amounts in thousands b For the firm ROE PM TA turnover EM 151 175 4275000 1752750 645 For t...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Finance questions
-
Data for Morton Chip Company and its industry averages follow. a. Calculate the indicated ratios for Morton. b. Construct the extended Du Pont equation for both Morton and the industry. c. Outline...
-
Data for Barry Computer Company and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the extended Du Pont equation for both Barry and the industry. c. Outline...
-
Data for Barry Computer Co. and its industry averages follow. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. A. The firm's days sales outstanding is...
-
Beck Manufacturing reports the following information in T-account form for 2019. The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished...
-
a. A company is building a new plant on the outskirts of Smallesville. The town has offered to donate the land, and as part of the agreement, the company will have to build an access road from the...
-
The company specializes in high-end sports and luxury autos and has one of the largest inventories of used Porsches on the West Coast, (More than 50 Porsches are always in stock.) The inventory is...
-
Its not like what youve done has really hurt anyone. At most, the missing money might cost earnings-pershare, maybe a penny. Is that what caused you to write those checks in the name of your company?
-
Soft selling occurs when a buyer is skeptical of the quality or usefulness of a product or service. For example, suppose youre trying to sell a company a new accounting system that will reduce costs...
-
Write a Java program to Connect Java Application with Oracle database. Please, use the keyboard and support your answers with a screenshot
-
Pharmagen Pharmaceutical Development Funding On January 1, 2006, Pharmagen, a pharmaceutical company (Pharma or the Company), entered into a funding agreement (Agreement) with Company XYZ, an...
-
Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total assets turnover: 1.5 Gross profit margin on sales: (Sales...
-
The Jimenez Corporation's forecasted 2016 financial statements follow, along with some industry average ratios. Calculate Jimenez's 2016 forecasted ratios, compare them with the industry average...
-
Researchers testing a new medication find that 7% of users have side effects. To how many patients would a doctor expect to prescribe the medication before finding the first one who has side effects?
-
You are saving up to buy something that costs $ 500 . So far, you have earned $ 315 . What percentage of the money required for the purchase do you already have?
-
Find lim f(x) using the table shown below. Be sure to fill out the table and round all numbers to three x 3 decimal places. X f(x) 2.9 lim_f(x) = x3 2.99 2.999 f(x) = 3 X x - 3 x - 3 3.001 3.01 A 3.1
-
my python code is not working not sure why # Library Project import datetime import uuid class LibrarySystem: def __init__(self, list_of_books, library_name): self.list_of_books = list_of_books...
-
Assume the risk-free rate is 5% and the market return is 12%. If inflation increases in the market and causes the risk-free rate to increase to 6%, what will be the change to SML? Draw the original...
-
A client has paid $239 in personal property tax related to her car. The first $189 of that amount was based on the value of the car, and the remaining $50 was based on the weight of the vehicle. What...
-
The file P14_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this...
-
The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...
-
The Yoran Yacht Company (YYC), a prominent sailboat builder in Newport, may design a new 30-foot sailboat based on the winged keels first introduced on the 12-meter yachts that raced for the Americas...
-
Nichols Corporations value of operations is equal to $500 million after a recapitalization (the firm had no debt before the recap). It raised $200 million in new debt and used this to buy back stock....
-
Consider the data in Problem 18-1. Assume that Reynoldss tax rate is 40% and that the equipments depreciation would be $100 per year. If the company leased the asset on a 2-hear lease, the payment...
-
The finance controller is seeking process improvement to reduce customer complaints due to late billings. The concerned departments include customer service who receives and processes orders,...
-
The Student Registration System (SRS) allows students to register for course offerings. This process entails a student requesting enrollment in a particular class. Enrollment in a class is contingent...
-
1. Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance, $418.50; and license, $35.00. She drove 8,280 miles last year. Her...
Study smarter with the SolutionInn App