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I need the returnon total assets and the return on equity You have just been hired as a financial analyst for Lydex Company, a manufacturer
I need the returnon total assets and the return on equity
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: Assets Current assets: Lydex Company Comparative Balance Sheet This Year Last Year 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, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 1,010,000 0 2,900,000 3,650,000 270,000 7,830,000 9,620,000 $ 17,450,000 $ 1,250,000 300,000 2,000,000 2,000,000 210,000 5,760,000 9,100,000 $ 14,860,000 $ 4,060,000 3,700,000 7,760,000 7,000,000 2,690,000 9,690,000 $ 3,080,000 3,100,000 6,180,000 7,000,000 1,680,000 8,680,000 $ 14,860,000 $ 17,450,000 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 Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 15,910,000 12,728,000 3,182,000 912,000 2,270,000 Last Year $ 14,080,000 10,560,000 3,520,000 1,624,000 1,896,000 370,000 310,000 1,900,000 570,000 1,330,000 320,000 1,010,000 1,680,000 $ 2,690,000 1,586,000 475,800 1,110,200 555,100 555,100 1,124,900 $ 1,680,000
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