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 Lydex Company Comparative Balance Sheet This Year Last Year Marketable securities Accounts receivable, net $ 960,000 $ 1,260,000 0 2,700,000 3,900,000 300,000 1,800,000 2,400,000 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, $78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,800,000 180,000 240,000 9,300,000 $17,100,000 5,940,000 8,940,000 $14,880,000 $ 3,900,000 3,600,000 $ 2,760,000 3,000,000 5,760,000 7,500,000 7,800,000 7,800,000 1,800,000 1,320,000 9,600,000 9,120,000 $17,100,000 $14,880,000