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Based on this information, compute (a) the current ratio, (b) the days sales outstanding (c) the inventory turnover ratio,(d) the debt to asset ratio (e) ROA and (f) ROE (01 each = 06)

Based on this information, compute (a) the current ratio, (b) the days sales outstanding (c) the inventory turnover ratio,(d) the debt to asset ratio (e) ROA and (f) ROE (01 each = 06)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q no 3: Financial Statement analysis: Ratio analysis Data for Lozano Chip Company and its industry averages follow. Calculate the indicated ratios for Lozano. Lozano Chip Company: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash Receivables Inventories Total current assets Net fixed assets Total assets $ 225,000 1,575,000 1.125,000 $2,925.000 1,350,000 $4,275,000 Sales Cost of goods sold Selling, general, and administrative expenses Earnings before interest and taxes (EBIT) Accounts payable Notes payable Other current liabilities Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income Total current liabilities Long-term debt Common equity Total liabilities and equity $ 601.866 326.634 525.000 Lozano Chip Company: Income Statement for Year Ended December 31, 2016 (Thousands of Dollars) $1.453,500 1,068.750 1.752.750 $4.275,000 $7,500.000 6,375.000 825,000 $ 300.000 111.631 $ 188,369 75.348 $ 113,021 Based on this information, compute (a) the current ratio, (b) the days sales outstanding (c) the inventory turnover ratio,(d) the debt to asset ratio (e) ROA and (f) ROE (01 each = 06)
Transcribed Image Text:Q no 3: Financial Statement analysis: Ratio analysis Data for Lozano Chip Company and its industry averages follow. Calculate the indicated ratios for Lozano. Lozano Chip Company: Balance Sheet as of December 31, 2016 (Thousands of Dollars) Cash Receivables Inventories Total current assets Net fixed assets Total assets $ 225,000 1,575,000 1.125,000 $2,925.000 1,350,000 $4,275,000 Sales Cost of goods sold Selling, general, and administrative expenses Earnings before interest and taxes (EBIT) Accounts payable Notes payable Other current liabilities Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income Total current liabilities Long-term debt Common equity Total liabilities and equity $ 601.866 326.634 525.000 Lozano Chip Company: Income Statement for Year Ended December 31, 2016 (Thousands of Dollars) $1.453,500 1,068.750 1.752.750 $4.275,000 $7,500.000 6,375.000 825,000 $ 300.000 111.631 $ 188,369 75.348 $ 113,021 Based on this information, compute (a) the current ratio, (b) the days sales outstanding (c) the inventory turnover ratio,(d) the debt to asset ratio (e) ROA and (f) ROE (01 each = 06)
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