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: 940.000 1,180,000 Cash Marketable securities 300.000 1,720,000 2,620,000 Accounts receivable, net 2,300,000 3,580,000 Inventory 190,000 Prepaid expenses 250.000 7,390,000 5,690,000 Total current assets 9,480,000 9,030,000 Plant and equipment, net Total assets 16,870,000 14,720,000 Liabilities and Stockholders' Equity Liabilities Current liabilities 3,990,000 2,940,000 3,660,000 3,060,000 Note payable, 10% 7,650,000 6,000,000 Total liabilities Stockholders' equity: 7,500,000 7,500,000 Common stock, $75 par value 1,720,000 Retained earnings 1,220.000 8,720,000 Total stockholders' equity 9,220,000 Total liabilities and stockholders' equity 16,870,000 14,720,000