You have just been hired as a financial analyst for Lydex Company, a manufocturer 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 Income Statement and Reconciliation \begin{tabular}{lcc} Sales (all on account) & This Year & Last Year \\ Cost of goods sold & 5,750,000 & $12,480,000 \\ Gross margin & 12,600,000 & 9,900,000 \\ Selling and administrative expenses & 3,150,000 & 2,580,000 \\ Net operating income & 1,590,000 & 1,560,000 \\ Interest expense & 1,560,000 & 1,020,000 \\ Net income before taxes & 360,000 & 300,000 \\ Income taxes (30\%) & 1,200,000 & 720,000 \\ Net income & 360,000 & 216,000 \\ Common dividends & 840,000 & 504,000 \\ Net income retained & 360,000 & 252,000 \\ Beginning retained earnings & 480,000 & 252,000 \\ Ending retained earnings & 1,320,000 & 1,068,000 \\ \cline { 2 - 3 } & $1,800,000 & 1,320,000 \end{tabular} To begin your assignment you gather the following financial data and ratios that are typical of Common-Size Balance Sheets The financial statements for Castile Products, Incorporated are given below