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 920,000 2,580.000 3,570,000 250.000 7,380,000 9, 460,000 $16,790,000 $1,170,000 300,000 1,600,000 2,200,000 190.000 5,540,000 9,020,000 $14.500.000 Maxketable securities hecounts receivable, Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stoelholders" Liabilities: Current liabilities Note payable, 106 Total liabilities Stockholders' equity: Common stock, $70 par va Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,980,000 2.640,000 7,620.000 $2.920,000 3,040,000 5.960,000 7.000.000 2,170.000 9, 170,000 $16,790,000 7.000.000 1.000.000 ,600,000 $14.560.000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales all on account) $15, 820,000 $13,280,000 Cost of goods sold 12,664, 000 9.980. DOD Gross wangin 3.166,000 0 .000 Selling and administrative expenses 1.402,000 3,592,000 Net operating income 1,764,000 1.720,000 Interest expense 364,000 304,000 Bet Leone before taxes 1.400,000 0.520,000 Income taxes (300) 420.000 4 29.200 Net Income 900.00 9 96, 800 Common dividends 410,000 490,00 Net income retained 570,000 490.400 Beginning retained camninga 1,600,000 1,101.600 Ending retained canings $ 2,170.000 1.600.000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Current ratio Reid-test ratio Average collection period Average sale period Return on asets Debt-to-equity ratio Times Interest Earned ratio Price caninge katso Required: 1. Present the balance sheet in common-size format 2. Present the income statement in common-size format down through net income Price-earnings ratio Required: 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 1 Required 2 Present the balance sheet in common-size format. (Round your answers to 1 decin figures may not fully reconcile down a column.) Lydex Company Common-Size Balance Sheets This Year s t Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Llabilities 0.0 Current liabilities Note payable, 10% Total liabilities Stockholders' equity Common stock. $70 per value Retained earnings Total stockholders equity Total liabilities and equity Required 2 > yn y en you gatner the following financial data and ratios that are typ Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.a 1.2 40 days 60 days 8.9 0.68 Required: 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 1 Required 2 Present the income statement in common-size format down through net income, decimal place. Due to rounding, figures may not fully reconcile down a column) Last Year / Lydex Company Common-Size Income Statements This 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 /