7 Part 3 of 3 148 points Required information [The following information applies to the questions displayed below] 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: Assets Book Ask P References Current assets Cash Marketable securities Lydex Company Comparative Balance Sheet This Year Last Year $ 1,010,000 $1,250,000 500,000 2,000,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equiprent, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% total liabilities Stockholders equity- Common stock, $70 per value Retained earnings Total stockholders equity) Total liabilities and stockholders equity 2,900,000 3,650,000 270,000 7,830,000 9,430,000 $ 17,450,000 2,000,000 210,000 5,760,000 9,100,000 $ 14,560,000 $3,000,000 3,100,000 $ 4,060,000 3,704,000 7.700,000 5,150,000 7,000,000 7,000,000 2,690,000 1,060,000 9,600,000 640,060 $17,450,000 $14,000,000 7 Part 3 of 148 points eBook Lasparative Lecose ateterent and Heconesssation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Het operating income Interest expense Het Incose before taxes Income taxes (30%) Net incoe Common dividends Net income retained beginning retained earnings Ending retained earnings Lost Year 315,910,000 12,720,000 $14,000,000 0,500,000 3,192,000 3,520,009 12,000 3,024,000 2,270,000 1,850,000 370,000 1,900,000 $70,000 310,000 1,566,000 475,000 1,330,000 1,110,200 320,000 555,100 1,010,000 555,100 1,680,000 $2,000,000 5124,900 $1,600,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Ask Pint Current ratio Acid-test ratio: 2.3 1.1 Average collection period 32 days Average sale period Return on assets 60 days 9.0% Debt-to-equity ratio Tises interest earned ratie 516 Pelce earnings ratio 10 References 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 receivable at the beginning of last year totaled $1,720,000) (Use 365 days in a year. Round your intermediate calculetions and finel answers to 2 decimal place.) The average sale period. (The inventory at the beginning of last year totaled $2,080,000) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place) 1. The operating cycle (Round your intermediate calculations end final answers to 2 decimal place.) The total asset turnover (The total assets at the beginning of last year totaled $13,120,000) (Round your final answers to 2 decimal places.) Prim o References Working capital b. The current radio The acid test ration d. The average collection period e. The average sale period t The operating cycle The total asset turmover This Year Last Year days days days days days days 7 Part 3 of 3 148 points 0 Required information [The following information applies to the questions displayed below) 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: Assets eBook Ask Print References Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydek Company Comparative Balance Sheet This Year Last Year $1,010,000 $1,250,000 0 300,000 2,900,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders equity 3,650,000 270,000 7,830,000 9,620,000 $ 17,450,000 2,000,000 2,000,000 210,000 5,760,000 9,100,000 $ 14,860,000 $3,050,000 3,100,000 $4,060,000 3,700,000 7,760,000 6,160,000 7,000,000 7,000,000 2,690,000 1,680,000 9,690,000 8,660,000 $ 17,450,000 $ 14,660,000 7 Part 3 of 3 1.48 points eBook) Comparative income statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 15,910,000 12,725,000 3,182,000 912,000 2,270,000 370,000 1,900,000 570,000 1,330,000 320,000 1,010,000 1,680,000 $ 2,690,000 Last Year $ 14,060,000 10,560,000 3,520,000 1,624,000 1,896,000 310,000 1,586,000 475,300 1,110,200 555,100 555,100 1,124,900 $ 1,680,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Ask Print Current ratio Average sale period Return on assets Acid-test ratio Average collection period. Debt-to-equity ratio Price-earnings ratio 2.3 1.1 32 days 60 days 9.8% 0.7 Times interest earned ratio 5.8 10 4 References 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 receivable at the beginning of last year totaled $1720,000) (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 $2.080,000) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) 1. 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 $13,120,000) (Round your final answers to 2 decimal places.) Print a. Working capital This Year Last Year b. The current ratio c. The acid-test ratio References d. The average collection period days days e. The average sale period days days f. The operating cycle days days g. The total asset turnover