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Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averagesfollow. Lozano Chip Company: Balance Sheet as ofDecember 31, 2019 (Thousands of Dollars) Cash $   235,000 Accounts payable $   600,000 Receivables 1,575,000 Notes payable 100,000 Inventories 1,130,000 Other current liabilities 545,000   Total current assets $2,940,000   Total current liabilities $1,245,000 Net fixed assets 1,315,000 Long-term debt 400,000 Common equity 2,610,000 Total assets $4,255,000 Total liabilities and equity $4,255,000 Lozano Chip Company: Income Statement forYear Ended December 31, 2019 (Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6,375,000 Selling, general, and administrative expenses 937,000   Earnings before interest and taxes (EBIT) $   188,000 Interest expense 40,000   Earnings before taxes (EBT) $   148,000 Federal and state income taxes (25%) 37,000 Net income $   111,000 Calculate the indicated ratios for Lozano. Do not roundintermediate calculations. Round your answers to two decimalplaces. 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 % Use the extended DuPont equation to calculate ROE for bothLozano 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   %. Outline Lozano's strengths and weaknesses as revealed by youranalysis. The firm's days sales outstanding is more than twice as long asthe industry average, indicating that the firm should-Select-slackentightenItem 13 credit or enforce a-Select-morelessItem 14 stringent collection policy. The total assets turnover ratio is well -Select-abovebelowItem15 the industry average so sales should be-Select-decreasedincreasedItem 16 , assets-Select-decreasedincreasedItem 17 , or both. While the company's profit margin is -Select-higherlowerItem 18than the industry average, its other profitability ratios are-Select-highlowItem 19 compared to the industry - net income shouldbe -Select-higherlowerItem 20 given the amount of equity andassets.