Required information [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 Comparative Balance Sheet This Year Last Year Assets Current assets: 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, $75 par value $ 920,000 2,540,000 3,560,000 250,000 7,270,000 9,440,000 $ 16,710,000 $ 1,160,000 300,000 1,640,000 2,100,000 190,000 5,390,000 9,010,000 $ 14,400,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Lydex Company $ 3,970,000 3,640,000 7,610,000 7,500,000 1,600,000 9,100,000 $ 16,710,000 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense This Year $ 15,820,000 12,656,000 3,164,000 1,400,000 $ 2,900,000 3,040,000 5,940,000 7,500,000 960,000 8,460,000 $ 14,400,000 Last Year $ 13,180,000 9,885,000 3,295,000 1,500,000 1,764,000 364,000 1,707,000 304,000 Net income before taxes 1,400,000 1,403,000 Income taxes (30%) 420,000 420,900 Net income 980,000 902,100 Common dividende. 340,000 491,050 Net income retained 640,000 491,050 Beginning retained earnings 960,000 468,950 Dea