Lydex Company Comparative Balance Sheet This Year La=t Year Part 1 of 3 Current assets Cash $900,000 1,140,000 300,000 1,560,000 2,400,000 190,000 5,590,000 .990.000 $16,550,000 $14,580,000 Marketable securities Accounts receivablc, net 2,460,000 3,540,000 250,000 7,150,000 9,400,000 points Inventory Total current as ets; Plant and equipment, net Total assets Liabilities and Stockholders Equity Liabilities eBook Print Current liabilities Note payable, 10 Total liabilities Stockholders' equity! $3,950,000 2,860,000 , 020,.000 S,880,000 ,620,.000 References 7,570,000 Common stock, $75 par value 7,500,000 1,480,000 8,980,000 7,500,000 Retained earnings Total stockholders equity Total liabilitie and stockholders' equity 1,200,.000 8,700,000 $16,550,000 $14,580,000 Lydex Company Comparative Income Statenent and Reconciliation This Year Last Year Sales (all on account 15,800,000 $12,980,00 Cost of goods sold Gross marg Selling and administrative expenses Net operating incone Interest expense Net income before taxes Income taxes (305) Net incone Common dividends Net income retained Beginning retained 12,640,000 9,735,000 3,160,000 3,245,000 1,998,000 1,580,000 1,162,000 1, 665,000 302,000 800,000 1, 363,000 408,900 954,100 477.050 477,050 722,950 362,000 240,000 560,000 280,000 280,000 1,200,000 Ending retained earnings 1,480,000 $1,200,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Current ratio Acid-test ratio Average collection period Average sale period 40 days 60 days 8.6 ets Debt-to-equity ratio Times interest earned ratio Pricc-carnings ratio Problem 15-15 Part 1 Required: L You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both this year and last year (Round your Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio. b. The debt-to-equity ratio. C. The gross margin percentage d. The return on total assets. Total assets at the beginning of last year were $13,010,000.) e. The return on equity. (Stockholders' equlty at the beginning of last year totaled $8,222,950. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positlve or negative? a. The times interest earned ratio The debt-to-equity ratio c. The gross margin d. The return on total assets e. The return on equity fIs the company's financial leverage Problem 15-15 Part 2 2You decide next to assess the company's stock market performance. Assume that Lyde's stock price at the end of this year is $82 per share and that at the end of last year It was $50. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.) a. The earnings per share. b. The dvidend yleld ratio. C. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share of common stock. a. The eanings per share The dividend yield ratio . The dividend payout ratio d. The The book value per share common stock Problem 15-15 Part 3 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 $1,610,000) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $1,970,000.) (Use 365 days in a year Round your intermediate calculations and final answer to 2 decimal place.) 1. The operating cycle. (Round your intermediate calculations and final answer to 2 decimal place.) 9. The total asset turnover. (The total assets at the beginning of last year totaled $14.550,000) (Round your final answers to 2 decimal places.) This Year Last Year a. Working capital b. The current ratio c. The acid-test ratio d. The average collection da da da days days days eriod The average sale e. eriod f. The operating cycle 9- turnover The total asset