Data for Lozano Chip Company and its industry averages follow. 

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.

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Lozano Chip Company: Balance Sheet as of December 31, 2021 (Thousands of Dollars) Cash Receivables Inventories Total current assets Net fixed assets Total assets $225,000 Accounts payable 1,575,000 Notes payable 1,125,000 Other current liabilities $2,925,000 Total current liabilities 1,350,000 $4,275,000 Long-term debt Common equity Total liabilities and equity $ 600,000 100,000 525,000 $1,225,000 400,000 2,650,000 $4,275,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2021 (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 (25%) Net income $7,500,000 6,375,000 933,000 $ 192,000 40,000 $ 152,000 38,000 $ 114,000