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% $ 1,010,000 0 2,900,000 3,650,000 270,000 7,830,000 9,620,000 $ 17,450,000 $ 1,250,000 300,000 2,000,000 2,000,000 210,000 5,760,000 9,100,000 $ 14,860,000 Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 4,060,000 3,700,000 7,760,000 7,000,000 2,690,000 9,690,000 $ 17,450,000 $ 3,080,000 3,100,000 6,180,000 7,000,000 1,680,000 8,680,000 $ 14,860,000