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To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Problem 16-15 Part 1
To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Problem 16-15 Part 1 (Algo) Required: 1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio. b. The debt-to-equity ratio. c. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $13,110,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $8,492,250. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative
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