Chapter 16 Homework 7 Part 2 of 3 [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: 1.11 points 02:10:24 eBook Print References Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Comparative Balance Sheet This Year Last Year $ 1,030,000 0 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 2,980,000 3,670,000 270,000 7,950,000 9,660,000 $ 17,610,000 $ 1,270,000 300,000 2,080,000 2,200,000 210,000 6,060,000 9,120,000 $ 15,180,000 $ 4,080,000 3,720,000 7,800,000 $ 3,120,000 3,120,000 6,240,000 7,000,000 1,940,000 8,940,000 $ 15,180,000 7,000,000 2,810,000 9,810,000 $ 17,610,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Income taxes (308) Net income Net income before taxes Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 15,930,000 12,744,000 3,186,000 Last Year $ 14,280,000 10,710,000 3,570,000 1,114,000 2,072,000 372,000 1,700,000 510,000 1,190,000 320,000 870,000 1,940,000 $ 2,810,000 1,632,000 1,938,000 312,000 1,626,000 487,800 1,138,200 569,100 569,100 1,370,900 $ 1,940,000 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 2.3 1.1 Average collection period 32 days Average sale period Return on assets 60 days 8.5% Debt-to-equity ratio 0.7 Times interest earned ratio 5.7 Price-earnings ratio 10 Problem 16-15 Part 2 (Algo) 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $108 per share and that at the end of last year it was $76. For both this year and last year, compute: (Round your "Percentage" answers to 1 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-earnings ratio. e. The book value per share of common stock. a. The earnings per share b. The dividend yield ratio c. The dividend payout ratio d. The price-earnings ratio e. The book value per share of common stock This Year Last Year $ 6.06 % % % %