[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 $ 940,000 0 2,620,000 3,580,000 250,000 $ 1,180,000 300,000 1,720,000 2,300,000 190,000 Total current assets 7,390,000 5,690,000 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 $90 per share and that at the end of last year it was $58. 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. 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 $90 per share and that at the end of last year it was $58. 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. % % % C. % d. e. 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: Last Year Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 940,000 Marketable securities 0 Accounts receivable, net 2,620,000 Inventory 3,580,000 Prepaid expenses 250,000 $ 1,180,000 300,000 1,720,000 2,300,000 190,000 Total current assets Plant and equipment, net 7,390,000 9,480,000 5,690,000 9,030,000 Total assets $16,870,000 $14,720,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% $ 3,990,000 3,660,000 $ 2.940,000 3,060,000 Total liabilities 7,650,000 6,000,000 Stockholders' equity: Common stock, $75 par value Retained earnings 7,500,000 1.720,000 7,500,000 1,220,000 Total stockholders' equity 9,220,000 8,720,000 Total liabilities and stockholders' equity $16,870,000 $14,720,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year 15,840,000 13,380,000 Sales (all on account) $ 12,672,000 10,035,000 Cost of goods sold Gross margin Selling and administrative expenses 3,168,000 1,602,000 3,345,000 1,596,000 Net operating income Interest expense 1,566,000 366,000 1,749,000 306,000 Net income before taxes Income taxes (30%) 1,200,000 360,000 1,443,000 432,900 Net income Common dividends 840,000 340,000 1,010,100 505,050 Net income retained Beginning retained earnings 500,000 1,220,000 505,050 714,950 Ending retained earnings $1,720,000 $1,220,000 To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 2.4 1.1 40 days 60 days Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 9.1 % .69 5.7 10 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 $1,650,000.) e. The average sale period. (The inventory at the beginning of last year totaled $2,010,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year totaled $13,050,000.) This Year Last Year a. b. C. d. e. days days days days days days f. g