Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Required information Problem 16-15 (Algo) Comprehensive Ratio Analysis (LO16-2, LO16-3, LO16-4, LO16-5, L016-6] The following information applies to the questions displayed below.) You

please help
image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 16-15 (Algo) Comprehensive Ratio Analysis (LO16-2, LO16-3, LO16-4, LO16-5, L016-6] 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 performanc to its major competitors. The company's financial statements for the last two years are as follows: Last Year Lydex Company Comparative Balance Sheet This Year Assets Quxxent assets: Cash $ 1,030,000 Marketable securities 0 Accounts receivable, net 2,980,000 Inventory 3,670,000 Prepaid expenses 270,000 Total Current assets 7.950,000 Plant and equipment, net 9,660,000 Bota aseta $17, 610,000 Liabilities and Stockholders' Equity tabilis Current liabilities $ 4,000,000 Note Payable, 109 3.220.000 Hotel Liabilities 7,800,000 Stockholders equity : 7,000,000 Common stock, $ 70 par value 2,810.000 Retained earnings 9.810,000 Total stockholders i equity 517690,000 Total 11abilities and stockholders equity $ 1,270,000 300,000 2,000,000 2,200,000 210,000 6,060,000 9,120,000 $15, 160,000 $ 3,120,000 3.120,000 6,240.000 7.000,000 1.940,000 9.940,000 $15,180,000 Retained earnings Total stockholders' equity Total abilities and stockholders equity 2.810,000 9.910.000 $17.610,000 1,940,000 8,940,000 $15,180,000 Lydex Company Comparative Income Statement and Reconeiliation This Year Last Year Sales (all on account) $ 15,930,000 $ 14,280,000 Cost of goods sold 12,744,000 10, 710,000 Gross margin 3,186,000 3,570,000 Selling and administrative expenses 1,114,000 1.632,000 Net operating income 2,072,000 1,938,000 interest expense 372,000 312,000 Net income before taxes 1,700,000 1,626,000 Income taxes (308) 510,000 487,800 Net income 1,190,000 1,138,200 Common dividends 320,000 569,100 Net income retained 870,000 569,100 Beginning retained earnings 1,940,000 1,370,900 S 2,810,000 $ 1,940,000 Ending retained earnings 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 les Eatio Average calledtion period Average Salle period Return on assets Debt-to-equity ratio Times interest earned at to Price-earnings ratio 2.3 1.1 32 days 60 days 8.52 0.7 S. 10 Problem 16-15 Part 2 (Algo) 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $10 per share and that at the end of last year it was $76. For both this year and last year, compute: (Round your "Percentage" answers to decimal place and other intermediate and final answers to 2 decimal places.) a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share of common stock. This Year Last Year % se 2 % % % a. The earings per share The dividend yield ratio d. The dividend payout ratio d. The price-earnings ratio The book value per share of common stock

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_2

Step: 3

blur-text-image_3

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

Accounting And Causal Effects Econometric Challenges

Authors: Douglas A Schroeder

1st Edition

1441972242, 9781441972248

More Books

Students also viewed these Accounting questions