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: 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 stockholders' equity \begin{tabular}{rr} $880,000 & $1,120,000 \\ 0 & 300,000 \\ 2,380,000 & 1,480,000 \\ 3,520,000 & 2,200,000 \\ 240,000 & 180,000 \\ \hline 7,020,000 & 5,280,000 \\ 9,360,000 & 8,970,000 \\ \hline$16,380,000 & $14,250,000 \\ \hline$3,930,000 & $2,820,000 \\ 3,620,000 & 3,020,000 \\ \hline 7,550,000 & 5,840,000 \\ \hline 7,500,000 & 7,500,000 \\ 1,330,000 & 910,000 \\ \hline 8,830,000 & 8,410,000 \\ \hline$16,380,000 & $14,250,000 \\ \hline \end{tabular} Lydex Company To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: 1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the followinc for both Required: this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio b. The debt-to-equity ratio. c. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $12,990,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,947,650. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative