Help with the wrong answers in red, thank you.

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 $ 960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 $ 1,260,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 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 Stockholders' equity: Common stock, $78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,900,000 3,600,000 7,500,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,800,000 9,600,000 $ 17,100,000 7,800,000 1,320,000 9, 120,000 $ 14,880,000 Lydex Company Comparative Income Statement and Reconciliation This Year Sales (all on account) $ 15,750,000 Cost of goods sold 12,600,000 Gross margin 3,150,000 Selling and administrative expenses 1,590,000 Net operating income 1,560,000 Interest expense 360,000 Net income before taxes 1,200,000 Income taxes (30%) 360,000 Net income 840,000 Common dividends 360,000 Net income retained 480,000 Beginning retained earnings 1,320,000 Ending retained earnings $ 1,800,000 Last Year $ 12,480,000 9,900,000 2,580,000 1,560,000 1,020,000 300,000 720,000 216,000 504,000 252,000 252,000 1,068,000 $ 1,320,000 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 30 days 60 days 9.5% 0.65 5.7 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 $1,560,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $1,920,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 1 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $12,960,000.) (Round your final answers to 2 decimal places.) X Answer is complete but not entirely correct. This Year Last Year 3,900,000 3,180,000 a. Working capital b. The current ratio 2.00 2.15 c. The acid-test ratio 0.94 1.22 52.1 days 91.3 d. The average collection period e. The average sale period f. The operating cycle g. The total asset turnover days days 49.1 x days 79.6 days 128.7 X days 143.4 0.98 0.90