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Problem 14-15 (Algo) Comprehensive Ratio Analysis [The following information applies to the questions displayed below.] You have Just been hired as a financial analyst for

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Problem 14-15 (Algo) Comprehensive Ratio Analysis [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: To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Problem 14-15 Part 3 (Algo) 3. 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 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,710,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) e. The average sale petiod. (The inventory at the beginning of last year totaled $2,070,000 ) (Use 365 days in a year, Round your Intermediate calculations and final answers to 2 decimal place.) f, The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover (The total assets at the beginning of last year totaled $13,110,000 ) (Round your final answers to 2 decimal places.) 3. 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 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,710,000 ) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $2,070,000 ) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) 9. The total asset turnovet. (The total assets at the beginning of last year totaled $13,110,000 ). (Round your final answers to 2 decimal places.)

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