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: Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Comparative Balance Sheet This Year Last Year $ 1,020,000 0 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 Lydex Company 2,940,000 3,660,000 270,000 7,890,000 9,640,000 $ 17,530,000 $ 4,070,000 3,700,000 7,770,000 7,500,000 2,260,000 9,760,000 $ 1,260,000 300,000 2,040,000 2,100,000 210,000 5,910,000 9,110,000 $ 15,020,000 $ 3,100,000 3,100,000 6,200,000 7,500,000 1,320,000 8,820,000 $ 17,530,000 $ 15,020,000 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold This Year $ 15,920,000 12,736,000 Last Year $ 14,180,000 10,635,000