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 $ 948,eee 2,620, eee 3,580.ee 25e,eee 7.390.ee 9.480.ece $16.870.000 $ 1,2ee,eee 3eeeee 1,720.ece 2.300.000 190.ece 5,710.ece 9,030, eee $14,740,00 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 Liabilities: Current liabilities Note payable, 18% Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,880,eee 3,660.ece 7,548,80 $ 2,948,eee 3. ee.ece 6,800,000 7. See.ece 1,838. eee 9,338,eee $ 16,878,eee 7.see eee 1.248. 8,748,eee $14,748,eee $ Lydex Company Comparative Income Statement and Reconciliation This Year Sales (all on account) $ 15.840.00 Cost of goods sold 12.672.eee Gross margin 3,168,eee Selling and administrative expenses 1.473,429 Net operating income 1,694,571 Interest expense 366.ee Net Income before taxes 1,328,571 Income taxes (36X) 398.571 Net Income 938.888 Common dividends 340.ece Net income retained 590.ece Beginning retained earnings 1,249, eee Ending retained earnings 1.830.000 Last Year 13,390, eee 10,035, eee 3.345. 1.596, eee 1,749.680 3e6.ece 1,443,eee 432.9ee 1,819, 120 505.050 5e5, e5e 734,95 1,240,00 $ To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's Industry: 1.2 Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Tines interest earned ratio Price-earnings ratio 4e days 60 days 9.13 0.69 5.7 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 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Balance Sheets This Year Last 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 Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity Common stock. $75 par value Retained earnings Total stockholders' equity Total liabilities and equity 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.) 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