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Could I have help with part f please You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets.

Could I have help with part f pleaseimage text in transcribedimage text in transcribedimage text in transcribed

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: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 940,000 $ 1,180,000 Marketable securities 300,000 Accounts receivable, net 2,620,000 1,720,000 Inventory 3,580,000 2,300,000 Prepaid expenses 250,000 190,000 Total current assets 7,390,000 5,690,000 Plant and equipment, net 9,480,000 9,030,000 Total assets $ 16,870,000 $ 14,720,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,990,000 $ 2,940,000 Note payable, 10% 3,660,000 3,060,000 Total liabilities 7,650,000 6,000,000 Stockholders' equity: Common stock, $75 par value 7,500,000 7,500,000 Retained earnings 1,720,000 1,220,000 Total stockholders' equity 9,220,000 8,720,000 Total liabilities and stockholders' equity $ 16,870,000 $ 14,720,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,840,000 $13,380,000 Cost of goods sold 12,672,000 10,035,000 Gross margin 3,168,000 3,345,000 Selling and administrative expenses 1,602,000 1,596,000 Net operating income 1,566,000 1,749,000 Interest expense 366,000 306,000 Net income before taxes 1,200,000 1,443,000 Income taxes (30%) 360,000 432,900 Net income 840,000 1,010, 100 Common dividends 340,000 505,050 Net income retained 500,000 505,050 Beginning retained earnings 1,220,000 714,950 Ending retained earnings $ 1,720,000 $ 1,220,000 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 9.1% 0.7 5.7 10 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 $13,050,000.) (Round answers to 2 decimal places.) a. b. Working capital The current ratio The acid-test ratio The average collection period The average sale period The operating cycle The total asset turnover C. Answer is not complete. This Year Last Year 3,400,000 2,750,000 1.85 1.94 0.89 1.08 50.00 days 45.97 days 84.69 days 78.33 days days days 1.00 0.96 e. f. 9

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