Saved 1 21 points Problem 16-16 (Algo) Common-Size Financial Statements [LO16-1] 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: 03:38.37) Assets Current assets: Cash Lydex Company Comparative Balance Sheet This Year Last Year eBook References 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 $930,000 0 2,580,000 3,570,000 250,000 7,330,000 9,460,000 $ 1,170,000 300,000 1,680,000 2,200,000 190,000 5,540,000 9,020,000 $ 16,790,000 $ 14,560,000 $ 3,980,000 $ 2,920,000 3,640,000 7,620,000 7,000,000 2,170,000 9,170,000 3,040,000 5,960,000 7,000,000 1,600,000 8,600,000 $ 16,790,000 $ 14,560,000 Help Saved 1 21 points 03:38:12 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 This Year $ 15,830,000 12,664,000 3,166,000 1,402,000 Last Year $ 13,280,000 9,960,000 3,320,000 1,592,000 1,764,000 1,728,000 364,000 304,000 1,400,000 1,424,000 420,000 427,200 980,000 996,800 410,000 498,400 570,000 498,400 1,600,000 1,101,600 $1,600,000 ellook Help Save & Ext Ending retained earnings $ 2,170,000 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 ration 2.3 1.2 References Average collection period. 40 days Average sale period 60 days Return on assets 8.9% Debt-to-equity ratio. 0.68 Times interest earned ratio 5.9 Price-earnings ratio 10 21 Required 1 Required 2 1 points Present the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Balance Sheets 033734 Assets Current assets: Cash eBlock This Year Last Year % References Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets 00 0.0 Plant and equipment, net Total assets 0.0% 0.0 % Liabilities and Stockholders' Equity Liabilities: Current liabilities % % Note payable, 10% Total liabilities 0.0 0.0 Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity 0.0 0.0 0.0 % 0.0 % Total liabilities and equity- 1 21 points 03-3703 Debt-to-equity ratio Times interest earned ratio. Price-earnings ratio: Required: 0.68 5.9 10 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income. Complete this question by entering your answers in the tabs below. eBook References Required 1 Required 2 Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income. Interest expense Net income before taxes Income taxes (30%) Net income This Year Last Year %