Required information Problem 14-15 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: Lydex Company Assets Current assets: Cash Marketable securities Comparative Balance Sheet This Year Last Year $ 900,000 0 $ 1,140,000 300,000 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, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2,460,000 3,540,000 250,000 7,150,000 9,400,000 $16,550,000 1,560,000 2,400,000 190,000 5,590,000 8,998,800 $14,580,000 $ 3,950,000 3,620,000 7,570,000 $ 2,860,000 3,020,000 5,880,000 7,500,000 7,500,000 1,480,000 1,200,000 8,980,000 8,700,000 $16,550,000 $14,580,000 Lydex Company Sales (all on account) Comparative Income Statement and Reconciliation This Year $15,800,000 Last Year $12,980,000 Cost of goods sold 12,640,000 9,735,000 Gross margin 3,160,000 3,245,000 Selling and administrative expenses 1,998,000 1,580,000 Net operating income 1,162,000 1,665,000 Interest expense 362,000 382,000 Net incone before taxes 800,000 1,363,000 Income taxes (30%) 240,000 488,900 Net income 560,000 954,100 Net income retained Common dividends Beginning retained earnings Ending retained earnings To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 280,000 477,050 280,000 477,050 1,200,000 722,950 $ 1,480,000 $1,200,000