Lydex Company Comparative Balance Sheet This Year Last Year 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% $ 960,000 $ 1,200,000 0 2,700,000 3,600,000 300,000 1,800,000 2,000,000 260,000 200,000 7,520,000 5,500,000 9,520,000 $17,040,000 $14,550,000 9,050,000 $ 4,010,000 3,660,000 $ 2,980,000 3,060,000 Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,670,000 6,040,000 7,500,000 7,500,000 1,870,000 1,010,000 9,370,000 8,510,000 $17,040,000 $14,550,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) This Year $ 15,860,000 Last Year $13,580,000 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 12,688,000 10,185,000 3,172,000 3,395,000 1,006,000 1,604,000 2,166,000 1,791,000 366,000 306,000 1,800,000 1,485,000 540,000 445,500 1,260,000 1,039,500 400,000 519,750 519,750 490,250 860,000 1,010,000 $ 1,870,000 $ 1,010,000