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, 10% Total liabilities Lydex Company Comparative Balance Sheet Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold. Gross margin Selling and administrative expenses. Net operating income This Year Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings $ 980,000 0 2,780,000 3,620,000 260,000 7,640,000 9,560,000 Lydex Company Comparative Income Statement and Reconciliation This Year $ 4,030,000 3,680,000 7,710,000 5,800,000 9,070,000 $ 17,200,000 $ 14,870,000 7,500,000 1,990,000 9,490,000 $ 17,200,000 $ 15,880,000 12,704,000 3,176,000 1,208,000 1,968,000 368,000 1,600,000 480,000 Last Year 1,120,000 400,000 720,000 1,270,000 $ 1,990,000 $ 1,220,000 300,000 1,880,000 2,200,000 200,000 $ 3,020,000 3,080,000 6,100,000 7,500,000 1,270,000 8,770,000 $ 14,870,000 Last Year $ 13,780,000 10,335,000 3,445,000 1,612,000 1,833,000 308,000 1,525,000 457,500 1,067,500 533,750 533,750 736,250 $ 1,270,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 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. 2.4 1.1 a. Working capital b. The current ratio c. The acid-test ratio d. The average collection period e. The average sale period f. The operating cycle g. The total asset turnover 32 days 60 days 9.5% 0.7 5.8 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 receivable at the beginning of last year totaled $1,690,000.) (Use 365 days in a year. your intermediate calculations and final answers to 2 decimal place.) Rou e. The average sale period. (The inventory at the beginning of last year totaled $2,050,000.) (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 $13,090,000.) (Round your final answers to 2 decimal places.) This Year days days days Last Year days days days