Data for Lozano Chip Company and its industry averages follows (answers questions and show work): I was provided with the answers to the question and need the supporting work and formulas. Show work and formulas.
Balance Sheet in Thousands of dollars
cash $225,000 Accounts Payable $601,866
receivables 1,575,000 Notes payable 326, 634
inventories 1,125,000 other current liabilituies 525,000
total current assets 2,950,000 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
Income Statement in Thousands of Dollars
Sales 7,500,000
Costs of goods sold 6,375,000
selling general and admin expen 825,000
Earnings before taxes (EBT) 188,369
Federal and State Taxes (40%) 75,348
Net Income 113,022
a. calculate the indicated ratios for Lorzano---answers are: current ratio = 2.01, DSO = 77 days, INV TO = 5.67, FA turnover = 5.56, TA turnover = 1.75, PM = 1.5%, ROA = 2.6%, ROE = 6.4%, debt ratio = 33%, L/TA = 59%
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