(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: Assote Lydes Company Comparative Balance Sheet This Year Last Year Quesnot seles Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and eq Total assets Liabiliti ote payable, 10 Total Liabilities Stockholders quitys Common stock, 370 par value Retained earnings utal stockholders squity Total liabilities and stockholders' equity Lydes Company 990,000 $1,230,000 300,000 2,820,000 1,920,0001 3,530,000 2,300,000 260,000 200,000 3,700,000 5,950,000 9,580,000 $17,200,000 9,080,000 $15.030,000 $4,040,000 $3,040,000 3,680,000 3,080,000 7,130,000 6,120,000 3,000,000 7,000,000 2,140,000 1,910,000 9,560,000 8,910,000 $17,380,000 $15,030,000 Comparative Income Statenent and Reconciliation This Tear Last Tear Sales call on account) 15,990,000 $13,880,000 13.713,000 10,410,000 3,378,000 3,470,000 3,219,000 1,416,000 1,968,000 1,054,000 368,000 300,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold This Year Last Year $ 15,890,000 $13,880,000 jacone before taxes LA Com dividende Beginning retained earnings 12,712,000 10,410,000 3,178,000 3,470,000 1,210,000 1,616,000 1,968,000 1,854,000 368,000 308,000 1,600,000 1,546,000 480,000 463,800 1,120,000 1,002,200 470,000 541,100 650,000 541,100 1,910,000 1,369,900 $2,340,000 1,910,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lyc Company's industry 9.44 Problem 14-15 Part 1 Required 1 You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both year and last year (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) The times interest earned ratio The debt-to-equity ratio The gross margin percentage The um on fotal assets. (Total assets at the beginning of last year were $13,100,000) The retum on equity stockholders' equity at the beginning of last year totaled $8.368.900. There has been no change in common the last two years) financial leverage positive or negative? the com This Year Last Year 8.30 031 30% S 250