Problem 1 4 - 1 5 ( Algo ) Comprehensive Ratio Analysis [ LO 1 4 -
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Problem Algo Comprehensive Ratio Analysis LO LO LO LO LO
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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:
Problem Part Algo
You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute:
a Working capital.
b The current ratio. Round your final answers to decimal places.
c The acidtest ratio. Round your final answers to decimal places.
d The average collection period. The accounts receivable at the beginning of last year totaled $Use days in a year.
Round your intermediate calculations and final answers to decimal place.
e The average sale period. The inventory at the beginning of last year totaled $Use days in a year. Round your
intermediate calculations and final answers to decimal place.
f The operating cycle. Round your intermediate calculations and final answers to decimal place.
g The total asset turnover. The total assets at the beginning of last year totaled $Round your final answers to decimal
places.
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