Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 Part 2 of 3 15 points 0902 You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets.

image text in transcribed
image text in transcribed
image text in transcribed
5 Part 2 of 3 15 points 0902 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: tydex Corpany Comparative Balance Sheet Last Year Assets Current stat Canh 910,000 1,150,000 Marketable securities . 300.000 Recounts receivable set 2,500,000 1,600,000 Inventory 3,550,000 2,000,000 Deepaid expenses 250,000 190.000 Total current asta 7,210,000 5.240,000 plant and equipment, not 9.420,000 9.000.000 Total annet $16.630.000 $14,210,000 Liabilities and stockholders' Equity abilities Current Liabilities $ 3,960,000 $2,000,000 Note payable, 10 3.640.000 3.040,000 Total liabilities 600.000 stockholdere equity Common stock,670 par value 7.000.000 7.000.000 detained earnings 2.910.000 2.320.000 Total stockholders equity 9200000 220,000 Total liabilities and stockholders equity 514.260.000 Sood Prat References Lydew Company Comparative Thicon Statement and Reconciliation This Yeart Year Hales (11 on account $15.10.000 1.000.000 Cost of goods sold 12.140,000 9.610.000 Cross margin 3.263.000 3,210,000 selling and administrative expenses 1.250.000 Het operating in 1.568,000 1.686.000 Interont expona 365.000 30.000 Not income before ta 1,500,000 1.312.000 T304) 450,000 315.000 c 5 Part 2 of 3 Cumparative Intent and condition The Year Last Year Se all on anco) $ 15,000,000 13,000,000 Cost o yoode soli 12,648.000 90,000 Corgin 7,162,000 3,990,000 Bland annative expenses 1,290.000 1.506,010 Net operatin income 1.168,000 1,686,000 Teteret ex 366.000 300.000 Net Incone before taxes 2.500,000 1,282,000 Theonetas tas) 450,000 414,600 Net Income 1,000,000 067,600 Common dividende 403.700 Increased 210,000 483.700 Deginning reading 2.120,000 036300 ding retained aninge 2.030,000 5 1,320,000 15 pos 3 Skod To begin your asignment you gether the following financial data and ratios that are typical of companies in Lydex Company's industry ebook 2.3 1.0 Pin day day Current ratio Meidet ratio Average collection period sale period Returnste Duboiy va Les intercard Frice-carlinge ratio 1.7 02 5.7 10 Deferences 2. You decide next to assess the company's stock market performance. Assume that lydex stock price at the end of this year is 584 per share and that at the end of font year it was $52. For both this year and last year, computer Round your "Percentage answers to 1 decimal place and other intermediate and final answers to 2 decimal places a. The earrings per share Thone 5 Torturonte Debt-to-equity ratio Tiines interest and ratio cearnings at 8.75 0.7 5.7 10 Part 20 15 DO 3 2. You decide next to assess the company's stock market performance Assume that Lydex's stock price at the end of this year la 584 pershare and that at the end of fast year it was $52. For both this year and fast your compute: (Round your "Percentage answers to 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-comings ratio e. The book value per share of common stock Sobe The Year The caring per har The dividend yield to The dividend payout ratio The roamings to The book vale per share of common stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, Jeffrey Knapp, Susan McGowan, John Sweeting

11th Edition

0730344770, 9780730344773

More Books

Students also viewed these Accounting questions

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago