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Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 870,000 $ 1,110,000 Marketable securities 0 300,000 Accounts receivable, net 2,340,000

Lydex Company Comparative Balance Sheet
This Year Last Year
Assets
Current assets:
Cash $ 870,000 $ 1,110,000
Marketable securities 0 300,000
Accounts receivable, net 2,340,000 1,440,000
Inventory 3,510,000 2,100,000
Prepaid expenses 240,000 180,000
Total current assets 6,960,000 5,130,000
Plant and equipment, net 9,340,000 8,960,000
Total assets $ 16,300,000 $ 14,090,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 3,920,000 $ 2,800,000
Note payable, 10% 3,600,000 3,000,000
Total liabilities 7,520,000 5,800,000
Stockholders' equity:
Common stock, $70 par value 7,000,000 7,000,000
Retained earnings 1,780,000 1,290,000
Total stockholders' equity 8,780,000 8,290,000
Total liabilities and stockholders' equity $ 16,300,000 $ 14,090,000
Lydex Company Comparative Income Statement and Reconciliation
This Year Last Year
Sales (all on account) $ 15,770,000 $ 12,680,000
Cost of goods sold 12,616,000 9,510,000
Gross margin 3,154,000 3,170,000
Selling and administrative expenses 1,594,000 1,568,000
Net operating income 1,560,000 1,602,000
Interest expense 360,000 300,000
Net income before taxes 1,200,000 1,302,000
Income taxes (30%) 360,000 390,600
Net income 840,000 911,400
Common dividends 350,000 455,700
Net income retained 490,000 455,700
Beginning retained earnings 1,290,000 834,300
Ending retained earnings $ 1,780,000 $ 1,290,000

To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry:

Current ratio 2.3
Acid-test ratio 1.0
Average collection period 30 days
Average sale period 60 days
Return on assets 8.3 %
Debt-to-equity ratio 0.7
Times interest earned ratio 5.9
Price-earnings ratio 10

Assume that Lydexs stock price at the end of this year is $76 per share and that at the end of last year it was $44. For both this year and last year, compute:

a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share of common stock.

this year and last year, compute: a. Working capital. b. The current ratio.c. The acid-test ratio. d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,580,000.) (Use 365 days in a year.) e. The average sale period. (The inventory at the beginning of last year totaled $1,940,000.) f. The operating cycle. ( g. The total asset turnover. (The total assets at the beginning of last year totaled $12,980,000.) (Round your final answers to 2 decimal places.)

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