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

You decide, finally, to assess the companys liquidity and asset management. For both this year and last year, compute:

a. Working capital.

b. The current ratio. (Round your final answers to 2 decimal places.)

c. The acid-test ratio. (Round your final answers to 2 decimal places.)

d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,750,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)

e. The average sale period. (The inventory at the beginning of last year totaled $2,110,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.)

f. The operating cycle. (Round your intermediate calculations and final answer to 2 decimal place.)

g. The total asset turnover. (The total assets at the beginning of last year totaled $14,690,000.) (Round your final answers to 2 decimal places.)

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: $ 1,280,000 $ 1,040,000 Cash Marketable securities 300,000 2,120,000 2,300,000 210,000 3,020,000 3,680,000 270,000 Accounts receivable, net Inventory Prepaid expenses Total current assets 8,010,000 9,680,000 6,210,000 9,130,000 Plant and equipment, net $15,340,000 Total assets $17,690,000 Liabilities and Stockholders' Equity Liabilities: $ 4,090,000 Current liabilities 3,140,000 3,120,000 Note payable, 10% Total liabilities Stockholders equity: Common stock, $75 par value Retained earnings Total stockholders' equity 3,720,000 6,260,000 7,810,000 7,500,000 2,380,000 7,500,000 1,580,000 9,880,000 9,080,000 Total liabilities and stockholders' equity $15,340,000 17,690,000 Tuday Comnanu Required information a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,750,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $2,110,000.) (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answer to 2 decimal place.) g.The total asset turnover. (The total assets at the beginning of last year totaled $14,690,000.) (Round your final answers to 2 decimal places.) This Year Last Year a Working capital b. The current ratio c. The acid-test ratio d. The average collection period days days e. The average sale period days days f.The operating cycle days days g The total asset turnover