Lydex Company's financlal statements for the last two years are as follows:

The following financial data and ratios are typlcal of companles in Lydex Company's industry:

Exerclses $-$ Financial Statement Analysls $($i$)$

Net income retained Beginning retained earnings Ending retained earnings

The following financial data and ratios are typical of companles 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

$2\mathrm{.}3$

$1\mathrm{.}0$

$40$ days

$60$ days

$8\mathrm{.}5\%$

$0\mathrm{.}7$

$5\mathrm{.}810$

Required:

To assess the company's performance in terms of debt management and profitability, compute the following for this year a year:

Note: 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 $$13,000,000.)$

e$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year totaled $$8,080,300.$ There has been no chang common stock over the last two years.$)$

f$.$ Is the company's financial leverage positive or negative?

$\backslash$table$[[,$This Year,,Last Year,$],[$a$.$ The times interest eamed ratio,,,,$],[$b$.$ The debt$-$to$-$equity ratio,,,,$],[$c$.$ The gross margin peroentage,,i:$,,$:$\text{'}$