Lydex Company Comparative Balance Sheet This Year Last Year 960, eee 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, 18% Total liabilities Stockholders' equity: Common stock, $78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders equity 2,700, eee 3,900,000 240, 80e 7,800,000 9,300,eee $ 17,100,000 $ 1,268,888 300,000 1,800, eee 2,400,000 180, eee 5,940, eee 8,940, eee $14,88 , $ 3,900,000 3,6 , 7,5 , . $ 2,760, eee 3, eee, eee 5,760,000 7,800,000 1,800, eee 9,600,000 $ 17, 108, eee 7,800,000 1,320, eee 9,120,000 $ 14,880, eee Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,750, eee $ 12,480,000 Cost of goods sold 12,680, eee 9,900.00 Gross margin 3,150,000 2,580,000 Selling and administrative expenses 1.590,000 1,560,000 Net operating income 1,560,000 1,820,000 Interest expense 360, eee 300.000 Net income before taxes 1,200,000 720, eee Income taxes (30%) 360.00 216,00 Net income 840,000 524.ee Common dividends 360,000 252,000 Net Income retained 480.000 252.000 Beginning retained earnings 1,320,000 1.068.000 Ending retained earnings 5 1,800,00 5 1,320,000 Preu 38 Company's industry youret eonowing financial data and ratios that are typical of companies in Lydex 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 se 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 S1,560,000 (Us 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 51.920,000) (Use 365 days in a year Round your intermediate calculations and final answers to 1 decimal place) 1 The operating cycle (Round your intermediate calculations and final answers to 1 decimal place) 9. 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.) Last Year 3.180,000 2.15 1.21 a. Working capital b. The current ratio The acid-test ratio d. The average collection period e. The average sale period The operating cycle 9 The total asset turnover This Year 3,900.000 200 0.93 520 days 91 days 143.0 days 0.98 49.0 days 79.71 days 129.0 days 0.84