Required information

Problem $14-15($Algo$)$ Comprehensive Ratio Analysis $[$L$014-2,$ L$014-3,$ L$014-4,$ L$014-5,$ L$014-6]$

$[$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 performance

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 $1($Algo$)$

Required:

You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both

this year and last year: $($Round your "Percentage" answers to $1$ decimal place and other answers to $2$ decimal places.$)$

a$.$ The times interest earned ratio.

b$.$ The debt$-$to$-$equity ratio.

c$.$ The gross margin percentage.

d$.$ The return on total assets. $($Total assets at the beginning of last year were $$13,000,000.)$

e$.$ The return on equity. $($Stockholders$\text{'}$ equity at the beginning of last year totaled $$8,080,300.$ There has been no change in common

stock over the last two years.$)$

f$.$ Is the company's financial leverage positive or negative?

$ox$ Answer is complete but not entirely correct.