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 Set This Year Last Year Assets Cuments: Cash 120,000 $ 1.000.000 Markotable securities 300.000 Accounts receivable, et 2,380,000 11,980,000 Inventory 3,640.000 2.400.000 Prepaid experies 270,000 210,000 Totalcuments 7,500,000 5,990,000 Plant and ment, not 9,800,00D 9,000,000 S 17,190,000 $ 15,020,000 Liabilities and Stockholders' Equity Current abies $ 4.000.000 $ 3.000.000 Note payable, 10% 1.200.000 3.100.000 Totallable 2,750,000 10000 Stockholders'guity Common stock, $75 per 7,500,000 7,500,000 Read Barrings 1,040,000 1,380,000 Total solders' equity 9.4.00 3.100.000 Total abilities and stockholders' equity $ 17.190.000 $ 15,020,000 Lydex Comory Comparative Income Statement and Reconciliation This Year Last Your Sales all on account S 15.900,000 $ 13.980,000 Cost of goods sold 12.720.000 105 000 Grass margin 3,180 000 3.495.000 Seling and administrative expenses 1410.000 1.620.000 Net operating income 1.770.000 1.075.000 Interest expense 370 000 310.000 Net Income before was 1.400.000 1.565.000 Income (30%) 420.000 300 Net Income 33.000 1.095.000 Common dividends 400.000 Net incorretained 580.000 54750 Beginning retained comings 1,380,000 812 250 Endir retained eaming $ 1.940,000 $ 1.350.000 To begin your assignment you gather the following financial data and radios that are typical of companies in Lydex Company's industry 23 Currentie Acid-strato Average collection period Average sare period Return on asset Debt-to- Times Interested ratio 32 days 60 daya 5.7 110 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: Required 2 Present the balance sheet in common size format. (Round your answers to decimal place. Due to rounding, figures may not fully reconcle down 3 column) Last Year Lydex Company Common-Size Balance Sheets This Year Assets Cuentas Cash Marketable securities Accounts receivable.net Inventory Prepaid Total currents Plant and cannel Toalets Liabilities and Stockholders' Equity Carreras Note payable, 10% Total Stococos equity Common stock. $75 par vale Rated Total Stockhodesequity Totalbines and quity 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. (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 % %