Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help asap !! You have just been hired as a financial analyst for Lydex Company. a manufacturer of safety helmets. Your boss has asked

please help asap !!

image text in transcribed
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 financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,830, 080 5 1, 276.ege Marketable securities 380 080 Accounts receivable, net 2,980, 080 2,080,080 Inventory 3.670, 808 2 , 200,080 Prepaid expenses 270,098 210.989 Total current assets 7.950, 680 Plant and equipment. net 9, 560, 080 9. 120,980 Total assets $ 25,180.080 Liabilities and stockholders Equity Liabilities: Current liabilities 3 4, 080, 080 Note payable, 10% 13, 120,080 Total liabilities 7, 900,980 16.248, 080 Stockholders equity: Common stock, $70 par value 7,060, 080 Retained earnings 2, 816, 608 Total stockholders' equity Total liabilities and stockholders equity 5 17 610 086 2 15. 189.680 Lydex Company comparative Income Statement and Reconciliation this Year inline Last Year sales (all on account) $ 14.280,680 Cost of goods sold 18, 744) 630 Gross margin Selling and administrative expense 114, Bee Net operating income Interest expense Net income before ta Income taxes ( set) Net income Common dividends Net income retained Beginning retained earning Ending retained earnings To begin your assignment you gather the following financial pate ane ratios that are typical of companies in Lycex Company's Inoustry: Current ratio Acad test ratio Average cel lection ported Average sale period Return an assets Debt to equity rathe Times anterent earned netac Prace earnings ratio Problem 14-15 Part 3 (Algo) 3, You decide, finally, to assess the company's liquidity and asset management. for both the yeen and less veen compute 2. 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.) A. The average collection period. ( The accounts receivable at the beginning of last yearcome as silT-0 spouse 365 days in ave Round your Intermediate calculations and final answers to 2 decimal place.) The average azle period, (The Inventory of the beginning of last year totaled $2.100,000) (Use 365 days In a vest. Round bed intermediate calculations and frial answers to 2 decimal place.) The operating cycle (Round your intermediate calculations and final answers to 2 decimal place. places.) 9 The totel asset turnover ( The total assets of the beginning of last year tote so $ 3.140,800.) (Round your final answers to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Textbook Of Financial Accounting And Analysis

Authors: Gaurav Agrawal

1st Edition

9350840901, 9789350840900

More Books

Students also viewed these Accounting questions

Question

What is job rotation ?

Answered: 1 week ago

Question

Dont off er e-mail communication if you arent going to respond.

Answered: 1 week ago