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Required information [The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows: Lydex
Required information [The following information applies to the questions displayed below.] Lydex Company's 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 Inventory Accounts receivable, net Total current assets Prepaid expenses 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 $ 1,030,000 0 2,980,000 3,670,000 270,000 7,950,000 9,660,000 $ 17,610,000 $ 4,080,000 3,720,000 7,800,000 7,000,000 2,810,000 9,810,000 $ 17,610,000 $ 1,270,000 300,000 2,080,000 2,200,000 210,000 6,060,000 9,120,000 $ 15,180,000 $ 3,120,000 3,120,000 6,240,000 7,000,000 1,940,000 8,940,000 $ 15,180,000 Lydex Company 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 $ 15,930,000 12,744,000 3,186,000 1,114,000 2,072,000 372,000 1,700,000 510,000 1,190,000 320,000 870,000 1,940,000 $ 2,810,000 Last Year $ 14,280,000 10,710,000 3,570,000 1,632,000 1,938,000 312,000 1,626,000 487,800 1,138,200 569,100 569,100 1,370,900 $ 1,940,000 The following financial data and ratios are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period 2.3 1.1 32 days Average sale period 60 days Return on assets 8.5% Debt-to-equity ratio 0.7 Times interest earned ratio 5.7 Price-earnings ratio 10 2. To assess the company's stock market performance, compute the following for this year and last year. Assume Lydex's stock price at the end of this year and last year was $108 and $76, respectively. Note: 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 % %
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