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 $1,620,000.) (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.)

g. 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.)

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has aske you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performand 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 $ 910,80 2,500,000 3,550,000 250,000 7,210,000 9,420,000 $ 16,630,00 $ 1,150, eee 300,000 1,680,00 2,000,000 190, ee 5,240,00 9,880, eee $ 14,240,00 Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 19% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,960,80 3,640,000 7,6e0, cee $ 2,880,000 3,840, 890 5,920, eae 7, eee, ce 2,030,000 9,030,000 $ 16,630,000 7,080, eee 1,320, eee 8, 320, eee $ 14,240, eee Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,810,800 $ 13,080,000 Cost of goods sold 12,648,800 9,810, eee Gross margin 3,162, see 3,270, e Selling and administrative expenses 1,298, see 1,584.ee Net operating income 1,864,eee 1,686, 80e Interest expense 364, eee 384, eee Net income before taxes 1,588,888 1,382,000 Income taxes (30%) 450,eee 414,600 Net income 1,05e, Bee 967,400 Common dividends 340, see 483,700 Net income retained 710,eee 483,700 Beginning retained earnings 1,320, see 836,300 Ending retained earnings $ 2,03e,eee $ 1,320, 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 Times interest earned ratio Price-earnings ratio 2.3 1.8 4e days 60 days 8.7% 0.7 5.7 le u decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute