You have j ust 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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys financial statements for the last two years are as follows:

To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry:

Current ratio

2.3

Acid-test ratio

1.2

Average collection period

32

days

Average sale period

60

days

Return on assets

8.6

%

Debt-to-equity ratio

0.69

Times interest earned ratio

5.8

Price-earnings ratio

10

Required:
1.	Present the balance sheet in common-size format. (Round your percentage answers to 1 decimal place (i.e., 0.123 is considered as 12.3.) Due to rounding, figures may not fully reconcile down a column.)

2.	Present the income statement in common-size format down through net income. (Round your percentage answers to 1 decimal place i.e., 0.123 is considered as 12.3. Due to rounding, figures may not fully reconcile down a column.)