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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
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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys 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, Total liabilities Stockholders' equity: Common stock, $ par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales all on account $ $ Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings $ $ To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry: Current ratio Acidtest ratio Average collection period days Average sale period days Return on assets Debttoequity ratio Times interest earned ratio Priceearnings ratio To assess the companys performance in terms of debt management and profitability, compute the following for this year and last year: a The times interest earned ratio. b The debttoequity ratio. c The gross margin percentage. d The return on total assets. Total assets at the beginning of last year were $ e The return on equity. Stockholders equity at the beginning of last year totaled $ There has been no change in common stock over the last two years. f Is the companys financial leverage positive or negative? To assess the companys stock market performance, compute the following for this year and last year. Assume Lydexs stock price at the end of this year and last year was $ and $ respectively. a The earnings per share. b The dividend yield ratio. c The dividend payout ratio. d The priceearnings ratio. e The book value per share of common stock.
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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys 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,
Total liabilities
Stockholders' equity:
Common stock, $ par value
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity $ $
Lydex Company
Comparative Income Statement and Reconciliation
This Year Last Year
Sales all on account $ $
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Interest expense
Net income before taxes
Income taxes
Net income
Common dividends
Net income retained
Beginning retained earnings
Ending retained earnings $ $
To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry:
Current ratio
Acidtest ratio
Average collection period days
Average sale period days
Return on assets
Debttoequity ratio
Times interest earned ratio
Priceearnings ratio
To assess the companys performance in terms of debt management and profitability, compute the following for this year and last year:
a The times interest earned ratio.
b The debttoequity ratio.
c The gross margin percentage.
d The return on total assets. Total assets at the beginning of last year were $
e The return on equity. Stockholders equity at the beginning of last year totaled $ There has been no change in common stock over the last two years.
f Is the companys financial leverage positive or negative?
To assess the companys stock market performance, compute the following for this year and last year. Assume Lydexs stock price at the end of this year and last year was $ and $ respectively.
a The earnings per share.
b The dividend yield ratio.
c The dividend payout ratio.
d The priceearnings ratio.
e The book value per share of common stock.
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