please see below. Answer ? listed below.

Comprehensive Ratio Analysis

Data for Lozano Chip Company and its industry averages follow.

Lozano Chip Company: Balance Sheet as of December 31, 2019

(Thousands of Dollars)

Cash

$230,000

Accounts payable

$600,000

Receivables

1,575,000

Notes payable

100,000

Inventories

1,160,000

Other current liabilities

515,000

Total current assets

$2,965,000

Total current liabilities

$1,215,000

Net fixed assets

1,325,000

Long-term debt

400,000

Common equity

2,675,000

Total assets

$4,290,000

Total liabilities and equity

$4,290,000

Lozano Chip Company: Income Statement for Year Ended December 31, 2019

(Thousands of Dollars)

Sales

$7,500,000

Cost of goods sold

6,375,000

Selling, general, and administrative expenses

939,000

Earnings before interest and taxes (EBIT)

$186,000

Interest expense

40,000

Earnings before taxes (EBT)

$146,000

Federal and state income taxes (25%)

36,500

Net income

$109,500

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?

2.0

Days sales outstanding (365-day year)?

days

35.0

days

COGS/Inventory?

6.7

Sales/Fixed assets?

12.1

Sales/Total assets?

3.0

Net income/Sales?

%

1.2

%

Net income/Total assets?

%

3.6

%

Net income/Common equity?

%

9.0

%

Total debt/Total assets?

%

10.0

%

Total liabilities/Total assets?

%

60.0

%

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 decimal places.

For the firm, ROE is%.?

For the industry, ROE is%.?