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[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

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[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: $ 1,110,000 2$ Cash 870,000 Marketable securities 300,000 1,440,000 2,100,000 180,000 Accounts receivable, net 2,340,000 3,510,000 Inventory Prepaid expenses 240,000 Total current assets 5,130,000 8,960,000 6,960,000 Plant and equipment, net 9,340,000 $16,300,000 $14,090,000 Total assets Liabilities and Stockholders' Equity Liabilities: $ 3,920,000 3,600,000 $ 2,800,000 Current liabilities Note payable, 10% 3,000,000 5,800,000 Total liabilities 7,520,000 Stockholders' equity: Common stock, $70 par 7,000,000 7,000,000 value Retained earnings 1,290,000 1,780,000 Total stockholders' equity 8,780,000 8,290,000 Total liabilities and $16,300,000 $14,090,000 stockholders' equity 5. value: 1.75 points 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $76 per share and that at the end of last year it was $44. For both this year and last year, compute: (Round your intermediate calculations and final answers to 2 decimal places. For percentages 0.1234 should be considered as 12.34%.) 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 a. |% % b. C. d. e. 6. value: 1.75 points 3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute: (Use 365 days in a year. Round "days" intermediate calculations and final answers to 1 decimal place. Round all other intermediate calculations and final answers to 2 decimal places.) a.Working capital. b.The current ratio. c. The acid-test ratio. d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,580,000.) The average sale period. (The inventory at the beginning of last year 'totaled $1,940,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year totaled $12,980,000.) This Year Last Year a. b. |days |days days days days days d. e. f. g

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