(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: Last Year Lydex Company Comparative Balance Sheet This Year Assets Current annet Canh 1,010,000 Marketable securities . Accounts receivable.net 2,900,000 Inventory 3,650.000 Prepaid expenses 270,000 Total current assets 7,830,000 plant and equipment, net 9.620.000 Total assets $17,450,000 Liabilities and Stockholders' Equity Liabilities: Current Ilabilities 14,060,000 Note payable, 100 3.700.000 Total liabilities 7,750,000 stockholders' equity Common stock, $70 par value 7,000,000 Retained earnings 2.690.000 Total stockholdersequity 9.690,000 Total liabilities and stockholders' equity $17,450,000 $1,250,000 300.000 2,000,000 2,000,000 210.000 5,760,000 9.100.000 $14,860,000 63,000,000 3.100.000 6,180,000 7.000.000 1.6110,000 0.600.000 $14.860,000 1.dex Company Comparative Income Statement and Reconciliation This Year Last Year Sales all on account $ 15,910,000 $14.080,000 Cost of goods sold 12,228,000 10.560,000 Grous margin 3.102,000 3.520.000 we 1 in $17,450,000 $14,860,000 Total liabilities and stockholders' equity Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales all on account) $ 15,910,000 $ 14,080,000 Coat of goods sold 12,228,000 10.560,000 Gross margin 3,182,000 3,520,000 Selling and administrative expenses 912,000 1.624,000 Net operating income 2,270.000 1,895,000 Interest experte 370,000 310,000 Net Income before taxen 1,900,000 1.506,000 Income taxes (301) 570,000 475,000 Net Income 1.330,000 1,110,200 Common dividends 320,000 555, 100 Net Income retained 1.010,000 555,100 Beginning retained oarnings 1,680,000 1,124,900 Ending retained onrning $ 2,690,000 $1,680,000 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 ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times Interest earned ratio Price-earnings ratio 2.3 1.1 32 days 60 days 9.81 0.7 10 Problem 14-15 Part 2 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 $104 per share and that at the end of last year it was $72. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.) 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 Last Year $ a. The comings per share b. The dividend yield ratio c. The dividend payout ratio d. The price-camnings ratio e. The book value per share of common stock This Year 13.30 0.4% % %