11.

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the companys financial statements, including comparing Lydexs performance to its major competitors. The companys financial statements for the last two years are as follows: Lydex CompanyComparative Balance Sheet This YearLast YearAssets Current assets: Cash$940,000$1,180,000Marketable securities 0 300,000Accounts receivable, net 2,620,000 1,720,000Inventory 3,580,000 2,300,000Prepaid expenses 250,000 190,000Total current assets 7,390,000 5,690,000Plant and equipment, net 9,480,000 9,030,000Total assets$16,870,000$14,720,000Liabilities and Stockholders' Equity Liabilities: Current liabilities$3,990,000$2,940,000Note payable, 10% 3,660,000 3,060,000Total liabilities 7,650,000 6,000,000Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000Retained earnings 1,720,000 1,220,000Total stockholders' equity 9,220,000 8,720,000Total liabilities and stockholders' equity$16,870,000$14,720,000 Lydex CompanyComparative Income Statement and Reconciliation This YearLast YearSales (all on account)$15,840,000$13,380,000Cost of goods sold 12,672,000 10,035,000Gross margin 3,168,000 3,345,000Selling and administrative expenses 1,602,000 1,596,000Net operating income 1,566,000 1,749,000Interest expense 366,000 306,000Net income before taxes 1,200,000 1,443,000Income taxes (30%) 360,000 432,900Net income 840,000 1,010,100Common dividends 340,000 505,050Net income retained 500,000 505,050Beginning retained earnings 1,220,000 714,950Ending retained earnings$1,720,000$1,220,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry: Current ratio2.4 Acid-test ratio1.1 Average collection period40daysAverage sale period60daysReturn on assets9.1%Debt-to-equity ratio0.7 Times interest earned ratio5.7 Price-earnings ratio10 rev: 04_27_2020_QC_CS-2094762. You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $90 per share and that at the end of last year it was $58. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.)

a. The earnings per share.b. The dividend yield ratio.c. The dividend payout ratio.d. The price-earnings ratio.e. The book value per share of common stock.

		This Year		Last Year
a.	The earnings per share
b.	The dividend yield ratio		%		%
c.	The dividend payout ratio		%		%
d.	The price-earnings ratio
e.	The book value per share of common stock