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 Lyde's performance to its major competitors. The company's financial statements for the last two years fotows Assets Current assets: Cash Marketable securities Lydes Company Comparative Balance Sheet This Year Last Year $ 300,000 $ 1,140,00 . 2,460,000 3,540,000 250,000 2-152088 9,400,000 $16,550,000 jee,eee 1,560,000 2,400,000 190,000 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 Tetal Liabilities Steckholders' equity Common stock, $75 par value Retained earnings Tetal stockholders' equity Total liabilities and stockholders' equity Lydex Company Comparative Incene Statement and Sales (all on account) Cost of goods sold Gross margin $14,500,000 $ 2,860,000 3,420,000 5.800-300 $ 3,950,000 3,620,000 TALMAS 7,500,00 7,500,000 1,480,008 1,200,000 T $16,550,000 $14,500,000 Reconciliation, This Year Last Year 115,000,000 $12,980,000 12,640,000 9735,000 Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30) Net incone Connon dividends Net income retained Beginning retained earnings Ending retained earnings 3. 3,245,000 1,998,008 1580.000 1.163.000 1,445.000 362,000 382,000 180,000 1,363,665 240,000 408,900 954-188 200,000 477-458 280.000 4175 1,200.000 222,950 $ 1,480,000 $1,200,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry Current ratio Acid-test ratio 2.3 1.0 Average sale period Return on assets Average collection period Debt-to-equity ratio Price-earnings ratio) 40 days 60 days 8.6% 8.7 Tines interest earned ratio 5.9 10 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $82 per share and that at the end of last year it was $50. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places) a The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio d. The price-eamings ratio e. The book value per share of common stock The eamings per share This Year Last Year The dividend yield ratio The dividend payout ratio d. The price-eamings ratio The book value per share of common stock 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 900,000 8 2,460,000 3,540,000 250,000 $ 1,140,000 300,000 1,560,000 2,400,000 190,000 7,150,000 5,590,000 9,400,000 $16,550,000 $14,580,000 8,990,000 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 $ 3,950,000 3,620,000 7,570,000 $ 2,860,000 3,020,000 5,880,000 7,500,000 7,500,000 1,480,000 1,200,000 8,980,000 8,700,000 $16,550,000 $14,580,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) This Year Last Year $15,800,000 $12,980,000 Cost of goods sold 12,640,000 9,735,000 Gross margin 3,160,eee 3,245,000 Selling and administrative expenses 1,998,000 1,580,000 Net operating income 1,162,000 1,665,000 Interest expense 362,000 302,000 Net income before taxes 800,000 1,363,000 Income taxes (30%) 240,000 408,900 560,000 954,100 280,000 477,050 280,000 477,050 1,200,000 722,950 Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings $ 1,480,000 $1,200,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period 2.3 1.0 40 days Average sale period 60 days Return on assets 8.6% 0.7 Times interest earned ratio 5.9 Price-earnings ratio 10 Debt-to-equity ratio 2. You decide next to assess the company's stock market performance. Assume that Lydex's stock price at the end of this year is $82 per share and that at the end of last year it was $50. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.) a. The earnings per share. b. The dividend yield ratio. c. The dividend payout ratio. d. The price-earnings ratio. e. The book value per share of common stock. a The eamings per share b. The dividend yield ratio c. The dividend payout ratio d. The price-earnings ratio e. The book value per share of common stock This Year % % Last Year % %