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Please show what fits in where, and show your work to help me understand. You have just been hired as a financial analyst for Lydex

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedPlease show what fits in where, and show your work to help me understand.

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 $ 1,060,000 300,000 1,960,000 2,400,000 210,000 $ 820,000 Marketable securities 0 Accounts receivable, net Inventory Prepaid expenses 2,860,000 3,640,000 270,000 5,930,000 9,090,000 Total current assets 7,590,000 9,600,000 Plant and equipment, net $15,020,000 Total assets $17,190,000 Liabilities and Stockholders' Equity Liabilities: $ 4,050,000 3,700,000 $ 3,060,000 3,100,000 Current liabilities Note payable, 10% Total liabilities 7,750,000 6,160,000 Stockholders' equity: Common stock, $75 par value Retained earnings 7,500,000 1,360,000 7,500,000 1,940,000 Total stockholders' equity 8,860,000 9,440,000 Total liabilities and stockholders' equity $17,190,000 $15,020,000 Lydex Company Comparative Income Statement and Reconciliation This Year $15,900,000 12,720,000 Last Year $13,980,000 10,485,000 Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses 3,180,000 1,410,000 3,495,000 1,620,000 1,770,000 370,000 Net operating income Interest expense 1,875,000 310,000 1,400,000 420,000 Net income before taxes 1,565,000 469,500 Income taxes (30%) 1,095,500 547,750 Net income 980,000 400,000 Common dividends Net income retained 580,000 1,360,000 547,750 812,250 Beginning retained earnings $ 1,360,000 Ending retained earnings $1,940,000 To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio 2.3 Acid-test ratio 1.2 32 days 60 days 9.7% 0.65 Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio 5.7 Price-earnings ratio 10 Required: 1. Present the balance sheet in common-size format. (Round your percentage answers to 1 decimal place i.e., 0.123 is considered as 12.3. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Balance Sheets This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets % Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and equity 2. Present the income statement in common-size format down through net income. (Round your percentage answers to 1 decimal place i.e., 0.123 is considered as 12.3. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Income Statements This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income

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