12 N

please help highlight

Last Year Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 910,000 Marketable securities 0 Accounts receivable, net 2,500,000 Inventory 3,550,000 Prepaid expenses 250,000 Total current assets 7,210,000 Plant and equipment, net 9,420,000 Total assets $16,630,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,960,000 Note payable, 10% 3,640,000 Total liabilities 7,600,000 Stockholders' equity: Common stock, $70 par value 7,000,000 Retained earnings 2,030,000 Total stockholders' equity 9,030,000 Total liabilities and stockholders' equity $16,630,000 $ 1,150,000 300,000 1,600,000 2,000,000 190,000 5,240,000 9,000,000 $14,240,000 $ 2,880,000 3,040,000 5,920,000 7,000,000 1,320,000 8,320,000 $14,240,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,810,000 $ 13,080,000 Cost of goods sold 12,648,000 9,810,000 Gross margin 3, 162,000 3,270,000 Selling and administrative expenses 1,298,000 1,584,000 Net operating income 1,864,000 1,686,000 Interest expense 364,000 304,000 Net income before taxes 1,500,000 1,382,000 Income taxes (30%) 450,000 414,600 Net income 1,050,000 967,400 Common dividends 340,000 483,700 Net income retained 710,000 483,700 Beginning retained earnings 1,320,000 836, 300 Ending retained earnings $ 2,030,000 $ 1,320,000 Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.3 1.0 40 days 60 days 8.79 0.7 5.7 10 3. You decide, finally, to assess the company's liquidity and asset management For both this year and last year, compute: a. Working capital b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts recelvable at the beginning of last year totaled $1620,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) e. The average sale period. (The Inventory at the beginning of last year totaled $1,980,000.) (Use 365 days in a year. Round your Intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) 9. The total asset turnover. (The total assets at the beginning of last year totaled $13,020,000.) (Round your final answers to 2 decimal places.) This Year Last Year a. Working capital b. The current ratio c. The acid-test ratio d. The average collection period e. The average sale period 1. The operating cycle g. The total asset turnover days days days days days days