Helg 5 2 of 3 pped 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 Assets Last Year Current assets Cash $ 1,040,000 $ 1,280,000 Marketable securities 0 300,000 Accounts receivable, net 3,020,000 2,120,000 Inventory 3,680,000 2,300,000 Prepaid expenses 270,000 210.000 Total current assets 8,010,000 6,210,000 Plant and equipment, net 9.680,000 9.130,000 Total assets $17,690,000 $15.340.000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,090,000 $ 3, 140,000 Note payable, 100 3,720,000 3.120,000 Total liabilities 7,010,000 6.260,000 Stockholders' equity. Common stock, $75 par value 7,500,000 7,500,000 Retained earnings 2,380,000 1.580.000 Total stockholders' equity Total liabilities and stockholders' equity $17.690,000 $15,340,000 Book rences Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $15.940.000 $ 14,380,000 Cost of goods sold 12.752.000 10.785,000 Cross margin J,100,000 3,395,000 Belling and administrative expenses 1,216,000 1.636.000 Dr. Sales (all on account) Cost of goods sold Gross margin Selling and administrative 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 earninga $ 15,940,000 $14,380,000 12,752,000 10,785,000 3,188,000 3,595,000 1,216,000 1,636,000 1,972,000 1,959,000 372,000 312,000 1,600,000 1,647,000 480,000 494,100 1,120,000 1, 132,900 320,000 576,450 800,000 576,450 1,580,000 1,003,550 $ 2,380,000 $1,580,000 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 2.3 1.2 32 days 60 days 0.7 10 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 $110 per share and that at the end of last year it was $78. 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.) Help 3 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 $110 per share and that at the end of last year it was $78. 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. This Year Last Year % es 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 %
