it Opportunity #26 Saved Help Save & Exits Check my w You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to erform 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 sok $ 900,000 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 2,460,000 3,540, 250,000 7.150.000 9.400.000 516.550,000 $1,030,000 300.000 1,560,000 2,400,000 190.000 5.480,000 3.900.000 $14, 470,000 $ 3,950,000 3.520.00 $2,560,000 20.00 ate Day able te Stockholdersequity OLULIULUES equily. Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,500,000 1,480,000 8,980,000 $ 16,550,000 7,500,000 1,090,000 8,590,000 $14,470,000 Lydex Company Comparative Income Statement and Reconciliation This Year Sales (all on account) $ 15,800, eee Cost of goods sold 12,640, eee Gross margin 3,160,000 1,840,857 Selling and administrative expenses Net operating income 1,319, 143 362, eee Interest expense 957, 143 Net income before taxes 287, 143 Income taxes (30%) 670, eee Net income 280, eee Common dividends 390, eee Net income retained 1,090, eee Beginning retained earnings $ 1,480,00 Ending retained earnings Last Year $ 12,980,000 9 ,735,000 3.245,000 1,580, eee 1,665, eee 302,000 1,363, eee 408,900 954,100 477, 050 477, 050 612,958 $ 1,090, eee To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 2.3 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 40 days 60 days 3.61 DO 0.65 5.9 rence Required: 1. Present the balance sheet in common size format 2. Present the income statement in common-size format down through net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Last Year Lydex Company Common-Size Income Statements This Year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income %