I cannot find the return on total assets.

Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] (The following information applies to the questions displayed below.] 3 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: Last Year DOK int erences Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 1,020,000 Marketable securities 0 Accounts receivable, net 2,940,000 Inventory 3,660,000 Prepaid expenses 270,000 Total current assets 7,890,000 Plant and equipment, net 9,640,000 Total assets $17,530,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,070,000 Note payable, 108 3,700,000 Total liabilities 7,770,000 Stockholders' equity: Comon stock, $75 par value 7,500,000 Retained earnings Total stockholders' equity 2,260,000 9,760,000 Total liabilities and stockholders' equity $17,530,000 $ 1,260,000 300,000 2,040,000 2,100,000 210,000 5,910,000 9,110,000 $ 15,020,000 $ 3,100,000 3,100,000 6,200,000 7,500,000 1,320,000 8,820,000 $ 15,020,000 Lydex Company Comparative Income Statement and to Mc Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,500,000 2,260,000 9,760,000 $ 17,530,000 7,500,000 1,320,000 8,820,000 $15,020,000 k Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,920,000 14,180,000 Cost of goods sold 12,736,000 10,635,000 Gross margin 3,184,000 3,545,000 Selling and administrative expenses 1,014,000 1,628,000 Net operating income 2,170,000 1,917,000 Interest expense 370,000 310,000 Net income before taxes 1,800,000 1,607,000 Income taxes (30%) 540,000 482,100 Net income 1,260,000 1,124,900 Common dividends 320,000 562,450 Net income retained 940,000 562,450 Beginning retained earnings 1,320,000 757,550 Ending retained earnings $ 2,260,000 $ 1,320,000 t ences 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 2.3 1.1 32 days 60 days 9.9% 0.7 Me 5.9 Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,500,000 2,260,000 9,760,000 $ 17,530,000 7,500,000 1,320,000 8,820,000 $15,020,000 k Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,920,000 14,180,000 Cost of goods sold 12,736,000 10,635,000 Gross margin 3,184,000 3,545,000 Selling and administrative expenses 1,014,000 1,628,000 Net operating income 2,170,000 1,917,000 Interest expense 370,000 310,000 Net income before taxes 1,800,000 1,607,000 Income taxes (30%) 540,000 482,100 Net income 1,260,000 1,124,900 Common dividends 320,000 562,450 Net income retained 940,000 562,450 Beginning retained earnings 1,320,000 757,550 Ending retained earnings $ 2,260,000 $ 1,320,000 t ences 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 2.3 1.1 32 days 60 days 9.9% 0.7 Me 5.9 Common dividends Net income retained Beginning retained earnings Ending retained earnings 320,000 940,000 1,320,000 $ 2,260,000 562,450 562,450 757,550 $ 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: 2.3 1.1 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 32 days 60 days 9.9% 0.7 5.9 10 Problem 14-15 Part 1 Required: 1. You do Required information this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio. b. The debt-to-equity ratio. C. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $13,130,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $8,257,550. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative? Answer is complete but not entirely correct. a. b. The times interest earned ratio The debt-to-equity ratio The gross margin percentage The return on total assets The return on equity Is the company's financial leverage positive or negative? Last Year 6.18 0.70 C. d. This Year 5.86 0.80 20.0 % 14.3 X % 13.6 % Positive 25.0 % e f. 8.0 X % 13.2 Positive %