Problem 15-15 Comprehensive Ratio Analysis [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]

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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys financial statements for the last two years are as follows:

Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net $970,000 1,210,000 300,000 1.840,000 2,100,000 200,000 0 2,740,000 3,610,000 260,000 Prepaid expenses Total current assets Plant and equipment, net 7580,000 9,540,000 5,650,000 9,060,000 Total assets $17120,000 14,710,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% $4.020,000 3,680,000 3,000,000 3,080,000 Total liabilities 7,700,000 6,080,000 Stockholders' equity Common stock, $70 par value Retained earnings 7000,000 2,420,000 7000,000 1630,000 Total stockholders' equity 9,420,000 8,630,000 Total liabilities and stockholders' equity $17120,000 14,710,000