$ Lydex Company Comparative Income Statement and Reconciliation This Year Sales (all on account) $ 15,928,000 Cost of goods sold 12,736,000 Gross margin 3,184,900 Selling and administrative expenses 1,014,000 Net operating income 2,170,000 Interest expense 370,000 Net income before taxes 1,800,000 Income taxes (30%) 540,000 Net income 1,260,000 Common dividends 320,000 Net income retained 940,000 Beginning retained earnings 1,320,000 Ending retained earnings $ 2,260,000 Last Year 14,180,000 10,635,000 3,545,999 1,628,000 1,917,000 310,000 1,607,000 482,100 1,124,900 562,450 562,450 757,550 1,320,000 $ 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 Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.3 1.1 32 days 60 days 9.9% 0.7 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 $1,730,000) (Use 365 days in a year Round your Intermediate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $2,090,000) (Use 365 days in a year. Round your Intermediate calculations and final answers to 2 decimal place.) 1. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover (The total assets at the beginning of last year totaled $14.670,000) (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 period e. The average sale period t. The operating cycle 9. The total asset turnover days days days ays days