Required information Problem 14-15 (Algo) Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] [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: Assets Current assets: Lydex Company Comparative Balance Sheet This Year Last Year 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, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Lydex Company $ 990,000 0 2,820,000 3,630,000 260,000 7,700,000 9,580,000 $ 17,280,000 $ 1,230,000 300,000 1,920,000 2,300,000 200,000 5,950,000 9,080,000 $ 15,030,000 $ 4,040,000 3,680,000 7,720,000 $ 3,040,000 3,080,000 6,120,000 7,000,000 2,560,000 9,560,000 7,000,000 1,910,000 8,910,000 $ 17,280,000 $ 15,030,000 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings This Year $ 15,890,000 12,712,000 3,178,000 1,210,000 1,968,000 Last Year $ 13,880,000 10,410,000 3,470,000 1,616,000 1,854,000 308,000 368,000 1,600,000 480,000 1,120,000 470,000 650,000 1,910,000 1,546,000 463,800 1,082,200 541,100 541,100 1,368,900 $ 2,560,000 $ 1,910,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period 2.4 1.1 32 days 60 days Return on assets 9.6% Debt-to-equity ratio 0.7 Times interest earned ratio 5.9 Price-earnings ratio 10 Problem 14-15 Part 2 (Algo) 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $100 per share and that at the end of last year it was $68. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.) a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share of common stock. a. The earnings per share b. The dividend yield ratio c. The dividend payout ratio d. The price-earnings ratio e. The book value per share of common stock This Year % % Last Year % %