please help asap.
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 $1,030,980 1, 270,0Be Marketable securities Accounts receivable, net 2 980, 080 2.080,080 Inventory 3 670. 0De 2,280,008 Prepaid expenses 270, eve 216, 080 Total current assets 7. 956, 680 ,060 089 Plant and equipment, net 9.660, 080 9, 120,080 Total assets $ 17. 610 , eBe $ 15, 180,680 Liabilities and Stockholders Equity Liabilities: Current liabilities $ 4.080 , 080 3,120.080 Note payable, lex 3. 720 080 3, 120, 080 Total liabilities 6, 248, 080 Stockholders equity: Common stock, $70 par value 7,eve, one 7, 088, ees Retained earnings 21 818,800 Total stockholders equity 9 810,080 8.940 080 Total liabilities and stockholders equity $ 271616, ege $ 15, 180,080 Lydex Compa Comparative income Statement and Reconciliation IThas Yearly Last Year Sales (all on account) $ 15.930,098 3 14. 286 .ege Cost of goods sold 12 744, 896 Gross margin 3. 186 840 Selling and administrative expenses 1 124 808 1.632 800 Net operating income 2,872,860 1. 938,080 Interest expense 372.909 Net income before taxes Income taxes (30k) Net income 14138,280 Common davidends Net income retained Beginning Ending retained earnansal 3 2, 810, egg To begin your assignment you gather the following financial date and ratios that are typical of companies in Lydex Company's industry; Current ratio Acid test ratio 141 Average collection period Average sale period !ll Debt to equity ration Tames interest panned hat ip Price earnings ratio Problem 14-15 Part 1 (Algo) 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 lest year (Round your "Percentage] answers to | decimal place and other answers to 2 decimal places.) 2. The times interest earned recio 6. The debt-to-equity ratio. c. The gross margin percentage d. The return on total assets. (Total assets at the beginning of ies: veer were $13.140,000, e. The return on equity. (Stockholders) equity at the beginning of last year totaled $8.370.900. There has been me change stock over the last two veers.1
