Assets Current assets: Cash Marketable securities Accounts receivable, net Lyues sumpany Comparative Balance Sheet Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets 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 This Year Last Year 950,000 $ 1,190,000 300,000 2,660,000 1,760,000 3,590,000 2,400,000 260,000 200,000 7,460,000 5,850,000 9,500,000 $16,960,000 9,040,000 $14,890,000 $ 4,000,000 3,660,000 7,660,000 $ 2,960,000 3,060,000 6,020,000 7,000,000 7,000,000 2,300,000 1,870,000 9,300,000 8,870,000 $16,960,000. $14,890,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross wargin This Year $ 15,850,000 12,660,000 3,170,000 Last Year $ 13,480,000 10,110,000 3,370,000 Selling and administrative expenses tiet operating income 1,704,000 1,600,000 1,466,000 1,770,000 DAVE OF EARL Saved JEANS 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 1,466,000 1,770,000 366,000 1,100,000 306,000 1,464,000 330,000 770,000 439,200 1,024,800 340,000 512,400 430,000 1,870,000 512,400 1,357,600 $ 2,300,000 $ 1,870,000 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 40 days 60 days 9.2% 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 Help Save & Exit Subm Saved Help Save & Exit Submit 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 $1,660,000) (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 $2,020,000) (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 $13,060,000) (Round your final answers to 2 decimal places.) a Working capital This Year Last Year b. The current ratio c The acid-test ratio d. The average collection period days days The average sale period days days The operating cycle days days a The total asset fumover