To begin your assignment you gatherthe following nancial data and ratios that are typical of companies in Lydex Company's industry: Current ratio 2.3 Acid-test ratio 1.2 Average collection period 32days Average sale period Edays Return on assets 93% IZIelsrt-to-equityr ratio 8.65 Times interest earned ratio 5.? Priceearnings ratio 113 | Required: 1. Present the balance sheet in commonsize format. 2. Present the income statement in common-size format down through net income. Required 1 Required 2 Present the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Balance Sheets This Year Last Year Assets Current assets: Cash % Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets 0.0 0.0 Plant and equipment, net Total assets 0.0 % 0.0 % Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities 0.0 0.0 Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity 0.0 0.0 Total liabilities and equity 0.0 % 0.0 %Required 1 Required 2 Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Income Statements This Year Last Year Sales % % Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income %% %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 820,900 6 1, 060,090 Marketable securities 300, 090 Accounts receivable, net 2, 860, 090 1, 960, 090 Inventory 3, 640, 090 2, 400, 000 Prepaid expenses 270, 090 210, 090 Total current assets 7,590, 009 5,930, 090 Plant and equipment, net 9, 690,000 9, 090, 090 Total assets $ 17, 190, 090 $ 15, 020, 090 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,050,090 $ 3,060,090 Note payable, 10% 3,700, 000 3, 100, 090 Total liabilities 7,750, 000 5, 160, 090 Stockholders' equity: Common stock, $75 par value 7,500, 000 7,500, 090 Retained earnings 1, 940, 090 1, 360, 090 Total stockholders' equity 9, 440, 009 8, 860, 009 Total liabilities and stockholders' equity $ 17, 190, 000 $ 15, 020, 090 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,990, 090 $ 13,980, 009 Cost of goods sold 12, 720, 000 10, 485, 090 Gross margin 3, 180, 000 3, 495, 090 Selling and administrative expenses 1, 410, 090 1, 620, 090 Net operating income 1, 770,000 1, 875, 090 Interest expense 370, 000 310, 090 Net income before taxes 1, 400, 090 1, 565, 090 Income taxes (30%) 420, 090 469, 500 Net income 980, 090 1, 095, 500 Common dividends 400, 090 547 ,750 Net income retained 10,606 647,750 Beginning retained earnings 1, 360, 006 812, 250 Ending retained earnings $ 1, 940, 009 $ 1,360, 090