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: Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory) Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Comparative Balance Sheet This Year Last Year $1,050,000 0 3,060,000 Liabilities and Stockholders' Equity Liabilities: Current Liabilities Note payable, 10% Total liabilities. Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total Liabilities and stockholders' equity Lydex Company 3,400,000 240,000 7,750,000 9,700,000 $ 1,360,000 300,000 2,160,000 2,400,000 220,000 6,440,000 9,140,000 $ 17,450,000 $ 15,580,000 $ 4,400,000 3,720,0001 8,120,000 $ 3,160,000 3,120,000 6,280,000 7,000,000 2,330,000 9,330,000 7,000,000 2,300,000 9,300,000 $17,450,000 $ 15,500,000 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold: Gross margin This Year $ 15,950,000 12,760,000 3,190,000 Last Year $ 14,480,000 10,860,000 3,620,000 Selling and administrative expenses Net operating incone Interest expense Net income before taxes Income taxes (30%)) Net income Connon dividends. Net income retained Beginning retained earnings Ending retained earnings 2,018,000 1,640,000 1,172,000 1,980,000 372,000 312,000 800,000 1,668,000 240,000 500,400 560,000 1,167,600 530,000 30,000 2,300,000 583,800 563,800 1,716,200 $ 2,330,000 $2,300,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's Industry 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 ratie Required: 2.3 1.2 32 days 60 days 8.79 0.65 5.9 10 1. Present the balance sheet in common-size format 2. Present the income statement in common-size format down through net income Complete this question by entering your answers in the tabs below. Required 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.) Assets Current assets Cash Accounts receivable Inventory Lydes Company Common Size Balance Sheets This Year Last Year Prepaid expenses Total current assets 00 00 Plant and equipment, net Total 00% 009 Liabilities and Stockholders' Equity Liaboties 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.) Assets Current assets Cash Marketable securities Lydex Company Common-Size Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Note payable, 10% Total liabilities Stockholders' equity Common stock, $70 par value This Year Last Year 0.0 % % 0.0 0.0 % 100 % % 0.0 0.0 % Retained eamings Total stockholders' equity 00 0.0 Total liabilities and equity 0.0 % 00% H Required 2 > Complete this question by entering your answers in the tabs below. 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 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 This Year Last Year % % % < Required 1 Required 2>