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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

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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: This Year Last Year Lydex Company Comparative Balance Sheet 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, s7e par value Retained earnings Total stockholders' equity Total liabilities and stockholdersequity $ 970,000 8 2,740,000 3,610,000 260, eee 7,580,000 9540,000 $17, 120,000 1, 21e, see 3ee, eee 1,840, eee 2,100,000 200.000 5,650,000 9,860, eee $ 14,710,808 $ 4,028,888 3,680 000 2.700.000 $ 3,800,000 3,089, eee 6,980,000 7,880,000 2,420,000 9,420,000 $17, 120,00 7,800,000 1.630, eee 8,630, eee $ 14,710,000 Lydex Company Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,870, eee $ 13,680,000 Cost of goods sold 12,696,000 10, 260, Bee Gross margin Selling and administrative expenses 3,174,080 3,420,000 1 106,000 1,608,000 Net operating income 2,068,000 1,812,800 Interest expense 368,000 308,000 Net income before taxes 1,700,000 1,504,888 Income taxes (30%) 510,000 451, 200 Net income 1,190,000 1,052,800 Common dividends 400,000 526,400 Net income retained 790,000 526,400 Beginning retained earnings 1,630,000 1. 103,6ee Ending retained earnings $ 2,420,000 $ 1,630, eee 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 Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.4 1.1 48 days 6e days 9.4% e. 5.7 le 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 $96 per share and that at the end of last year it was $64. 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. t. The dividend payout ratio, d. The price-earnings ratio e. The book value per share of common stock This Year Last Year * The earnings per share b. The dividend yield ratio The dividend payout ratio d The price-earingstatio The book value per share of common stock

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