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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: Last Year Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 845,000 Marketable securities @ Accounts receivable, net 2,700,000 Inventory 3,600,000 Prepaid expenses 268, Total current assets 7,405,000 Plant and equipment, net 9,520,000 Total assets $16,925,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,010,000 Note payable, 10% 3,660,000 Total liabilities 7,670,000 $1,200,000 300,000 1,800,000 2,000,000 200,000 5,500,000 9,050,000 $14,550,000 $2,600,000 3,060,000 5,660, 800 Saved ework + VIU, Vou 3,660,000 7,670,000 VUUUU 3,060,000 5,660,000 Note payable, 10% Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,500,000 1,755,000 9,255,000 $16,925,000 7,500,000 1,390,000 8,890,000 $14,550,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $15,860,000 $13,580,000 Cost of goods sold 12,688,000 10,185,000 Gross margin 3,172,000 3,395,000 Selling and administrative expenses 1,713, 143 1,604,000 Net operating income 1,458,857 1,791, 000 Interest expense 366,000 306, 000 Net income before taxes 1,092,857 1,485,000 Income taxes (30%) 327,857 445,500 Net income 765,000 1,039,500 Common dividends 400,000 519,750 Present the income statement in common-size format down through net income. (Round your answers to 1 de Due to rounding, figures may not fully reconcile down a column.). Last Year Lydex Company Common Size Income Statements This Year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income

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