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% Total 1iabilities Stockholders" equity: common stock, $78 par value Retained earnings Total stockholders' equity Total 1iabilities and stockholders' equity \begin{tabular}{rr} $,960,000 & $1,260,000 \\ 2,700,000 & 300,000 \\ 3,900,000 & 2,800,000 \\ 240,000 & 180,000 \\ \hline 7,800,000 & 5,940,000 \\ 9,300,000 & 8,940,000 \\ \hline$17,100,000 & $14,880,000 \\ \hline$3,900,000 & $2,760,000 \\ 3,600,000 & 3,000,000 \\ \hline 7,500,000 & 5,760,000 \\ \hline 7,800,000 & 7,800,000 \\ 1,800,000 & 1,320,000 \\ \hline 9,600,000 & 9,120,000 \\ \hline$17,100,000 & $14,880,000 \\ \hline \end{tabular} Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} \hline 9,600,000 & 9,120,000 \\ \hline$17,100,000 & $14,880,000 \\ \hline \end{tabular} Lydex Company Comparative Income Statement and Reconciliation \begin{tabular}{lrr} Sales (all on account) & This Year & Last Year \\ Cost of goods sold & $15,750,000 & $12,480,000 \\ Gross margin & 12,600,000 & 9,900,000 \\ Selling and administrative expenses & 3,150,000 & 2,580,000 \\ Net operating income & 1,590,000 & 1,560,000 \\ Interest expense & 1,560,000 & 1,020,000 \\ Net income before taxes & 360,000 & 300,000 \\ Income taxes (30s) & 1,200,000 & 720,000 \\ Net income & 360,000 & 216,000 \\ Common dividends & 840,000 & 504,000 \\ Net income retained & 360,000 & 252,000 \\ Beginning retained earnings & 480,000 & 252,000 \\ Ending retained earnings & 1,320,000 & 1,068,000 \\ \cline { 2 - 3 } \end{tabular} CurrentratioAcid-testratioAveragecollectionperiodAveragesaleperiodReturnonassetsDebt-to-equityratioTimesinterestearnedratioPrice-earningsratio2.31.230days60days9.5%0.655.710 Lydex Company Common-Size Income Statements \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{c|}{ This Year } & \multicolumn{2}{c|}{ Last Year } \\ \hline Sales & & % & & % \\ \hline Cost of goods sold & & & & \\ \hline Gross margin & & & & \\ \hline Sellingandadministrativeexpenses & & & & \\ \hline Net operating income & & & & \\ \hline Interest expense & & & & \\ \hline Net income before taxes & & % & & % \\ \hline Income taxes (30%) & & & \\ \hline Net income & & & & \\ \hline \end{tabular}