please help me understand how to work the following question:

Federal and state income taxes ( 40%/6) 75, 348 Net income $ 113, 022 a . Calculate the indicated ratios for Lozano . Round your answers to two decimal places . Ratio Lozano Industry Average Current assets /' Current 2.0 liabilities Days Sales outstanding* days 35. 0 day's LOGS /' Inventory 5 . ] Sales /' Fixed assets 12 . 1 Sales / Total assets 3. 0 Net income / Sales 1 . 29/0 Net income / Total assets 3. 59/0 Net income / Common equity* 9. 09/0 Total debt / Total assets 30. 09'6 Total liabilities / Total assets 50. 09' *Calculation is based on a 365 - day year . 6. Construct the extended DU Pont equation for both Lozano and the industry . Round your answers to two decimal places . For the firm , ROE is For the industry , ROE is C . Outline Lozano's Strengths and weaknesses as revealed by your analysis blankProblem 3 - 13 _comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow . Lozano Chip Company : Balance Sheet as of December 31 , 2016 ( Thousands of Dollars ) Cash $ 225, 000 Accounts Payable $ 501, 865 Receivables 1 , 575, 000 Notes payable 326, 534 Inventories 1, 125, 000 Other current liabilities 525, 000 Total current assets $ 2, 525, 000 Total current liabilities $ 1, 453, 500 Net fixed assets 1 , 350, 000 Long - term debt 1 , 068, 750 Common equity 1 , 752, 750 Total assets $ 4, 275,000 Total liabilities and equity* $ 4, 275, 000 Lozano Chip Company : Income Statement for Year Ended December 31 , 2016 ( Thousands of Dollars ) Sales $ 7, 500, 000 Cost of goods sold 5, 375, 000 Selling , general , and administrative EXPENSES $25, 000 Earnings before interest and taxes ( EBITY 300, 000 Interest expense 1 1 1, 531 Earnings before taxes ('EETI 4} 18 8, 355