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 $ 980,000 0 $ 1,220,000 300,000 2,780,000 3,620,000 1,880,000 2,200,000 260,000 200,000 7,640,000 9,560,000 $17,200,000 5,800,000 9,070,000 $14,870,000 $ 4,030,000 3,680,000 7,710,000 $ 3,020,000 3,080,000 6,100,000 7,500,000 1,990,000 7,500,000 1,270,000 9,490,000 8,770,000 $17,200,000 $14,870,000 Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses This Year $ 15,880,000 12,704,000 3,176,000 1,208,000 1nce non Last Year $ 13,780,000 10,335,000 3,445,000 1,612,000 1 033 non