2. You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $102 per share and that at the end of last year it was $70. 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.

3. You decide, finally, to assess the companys 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 receivable at the beginning of last year totaled $1,710,000.) (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 $2,070,000.) (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.)

g. The total asset turnover. (The total assets at the beginning of last year totaled $13,110,000.) (Round your final answers to 2 decimal places.)

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 company's financial statements, including comparing Lydex's performance to its major competitors. The company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,eee, eee $ 1,240,00 Marketable securities 380,880 Accounts receivable, net 2,860, eee 1,960,000 Inventory 3,648,eee 2,480,000 Prepaid expenses 270,000 210,000 Total current assets 7,770,eee 6,110,000 Plant and equipment, net 9,600, een 9.090.000 Total assets $ 17,370, eee $ 15,288,888 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,250,000 $ 3,668,888 Note payable, 1ex 3,700,000 3,100,000 Total liabilities 7,758,888 6,160,000 Stockholders' equity: Connon stock, $75 par value 7,588,eee 7,500,000 Retained earnings 2,120,eee 1,540,000 Total stockholders' equity 9,628, eee 9,840,00 Total liabilities and stockholders' equity $ 17,370,eee $ 15,200,000 Lydex Company Comparative Income Statement and Reconciliation This Year Sales (all on account) $ 15,980, eee Cost of goods sold 12,728,888 Gross margin 3,180,000 Selling and administrative expenses 1,410, eee Net operating income 1,770, eee Interest expense 378,eee Net income before taxes 1,400,000 Income taxes (38%) 420.000 Net income 980,000 Connon dividends 488,eee Net income retained 588, eee Beginning retained earnings 1,548,eee Ending retained earnings $ 2,120, eee Last Year $ 13,988,eee 10,485,888 3,495,00 1,620, eee 1,875,000 310,000 1,565,000 469,500 1, e95,500 547,750 547,750 992,250 $ 1,548,eee To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's Industry Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Tines interest earned ratio Price-earnings ratio 2.3 1.1 32 days 60 days 9.7% 8.7 5.7 10 Problem 16-15 Part 1 (Algo) Required: 1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times Interest earned ratio. b. The debt-to-equity ratio. c. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $13,110,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $8.492,250. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative