21 only do c

1- spacken or tighten

2-more or less

3- above or below

4- decreased or incresed

5-decreased or increased

6- higher or lower

7- high or low

8- higher or lower

a Search this 24 5. 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 $ 215,000 Accounts payable $ 601,866 Receivables 1,575,000 Notes payable 326,634 Inventores 1,145,000 Other current liabilities 542,000 Total current assets $2,935,000 Total current liabilities $1,470,500 Net fixed assets 1,330,000 Long-term debt 1,068,750 Common equity 1,725,750 Total assets $4,265,000 Total liabilities and equity $4,265,000 Lozano Chip Company: Income Statement for Year Ended December 31, 2018 (Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6,375,000 Selling, general, and administrative expenses 815,000 Earnings before interest and taxes (EBIT) $ 310,000 Interest expense 111,631 Earnings before taxes (EBT) $ 198,369 Federal and state income taxes (40%) 79,348 Net income $ 119,021 a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places Ratio Lozano Industry Average Current assets/Current liabilities 2.02 2.0 Days sales outstanding" 76.65 days 35.0 days COGS/Inventory 5.57 6.7 Sales/Fixed assets 5.60 12.1 Sales/Total assets 1.25 3.0 Net income/Sales 1.51 1.29% Net income/Total assets 2.64 3.6% Net income/Common equity 6.45 9.09% Total debt/Total assets 32.64 30.0% Total liabilities/Total assets 59.00 % 60.0% *Calculation is based on a 365-day year. b. Use the extended DuPont equation to calculate ROE for both Lozano and the industry. Do not round intermediate calculation. Round your answers to two decimal places For the firm, ROE IS 6.45 % For the industry, ROE is 9.00 Online leannachtensthandwer.lv 42 DA No come 2,00 a. Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two decimal places, Ratio Lozano Industry Average Current assets/Current liabilities 2.02 2.0 Days sales outstanding" 76.65 days 35.0 days COGS/Inventory 5.57 6.7 Sales/Fixed assets 5.60 12.1 Sales/Total assets 1.75 3.0 Net income/Sales 1.51 % 1.2% Net income/Total assets 2.64% 3.6% Net income/Common equity 6.45% 9.0% Total debt/Total assets 32.64 % Total liabilities/Total assets 59.00 % 60.0% *Calculation is based on a 365-day year. 30.0% b. Use the extended DuPont equation to calculate ROE for both Lozano and the industry. Do not round intermediate calculations. Round your answers to two deomal places. For the firm, ROE IS 6.45 %. For the industry, ROE IS 9.00 % c. Outline Lozano's strengths and weaknesses as revealed by your analysis. The firm's days sales outstanding is more than twice as long as the industry average, indicating that the firm should -Select creditor enforce a Select-stringent collection policy. The total assets turnover ratio is well Select the industry average so sales should be Select assets Select or both. while the company's profit margin is Select than the industry average, its other profitability ratios are Select compared to the industry - net income should be select given the amount of equity and assets. Icon ko Question 11 of 25 Submit Test for Grading Save