please explain step by step thoroughly with formulas please

please explain step by step with formulas

Required information (The following informaton apoles to the questions displaycd beiorv) You have just been hired as a financial analyst for Lycfex Company. a manufacturer of safety heimets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydexs performance to its major competitors. The company's financial statements for the last two years are as foliows: To begin your assignment you gather the following financial coto and ratios that are typical of companies in Lyciex Company's industry: Required: 1. 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" onswers to 1 decimol place and other onswers to 2 decimal places.) D. The times interest earned ratio. b. The debi-to-equity ratio. c. The gross margin percentage. d The return on total assets. (Total assets at the beginning of last year were $13,070,000 ) e. The return on equity, (Stockholders' equity at the beginning of last year totaled $7,990,250. There has been no change in common stock over the last two years) I is the company's financial leverage positive or negative? Required information The following information applies to the questions displayed below.] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performance to its major competitors. The company's financialstatements for the last two years are as follows: to its major competitors. The company's financial statements for the last two years are as follows: Lydex Conpany Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipnent, net Total assets Liabilities and Stockholders' Equity Liabilitiest current liabilities Note. payable, 10% Total 1iabilities Stockholders' equity: Comnon stock, $75 par value Retalned earnings Total stockholders" equity. Total liabilities and stockholders " equity \begin{tabular}{rr} $4,010,000 & $2,980,000 \\ 3,660,000 & 3,060,000 \\ \hline 7,670,000 & 6,040,000 \\ \hline 7,500,090 & 7,500,600 \\ 1,870,000 & 1,018,600 \\ \hline 9,370,000 & 8,510,000 \\ \hline$17,040,000 & $14,550,000 \\ \hline \end{tabular} Lydex Company Sales (all on account) cost of goods sold To begin your assignment you gather the following financial data and ratios that are typical of companies in tydex Company's industry: 1. You decide first to assess the company's pertomance in terms of debt management and profitability, Compute the following for both Required: this year and last year (Round your "Percentege" onswers to 1 decimol ploce ond other onswers to 2 decimal ploces.) 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 $3,070,000 ) e. The return on equily, (Stockholders' equity at the beginning of last year totwed $7.990.250. There has been no change in comnon stock over the last two years) if is the company's financial leverage positive or negative