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 Lvdex CompanV Comparative Balance Sheet This Year Last Year AssetS Current assets: $ 980,000 $ 1,140,000 300,000 1,880,000 Marketable securities Accounts receivable, net 2,780,0e0 3,620,0e0 260,000 7,640,000 9,560,000 Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets 200,000 5,720,000 9,070,000 $ 17,200,000 $14,790,000 Liabilities and Stockholders Equity Liabilities: Current liabilities Note payable, 10% $ 4,030,000 $ 2,780,000 3,080,000 5,860,000 3,680,000 7,710,000 Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and stockholders equity 1,990,000 9,490,000 $17,200,000 7,500,000 1,430,000 8,930,000 14,790,000 Lvdex CompanV 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 (30%) $ 15,880,000 13,780,000 10, 335,000 3,445,000 1,612,000 1,833,000 308,000 1,525,000 457,500 1,067,500 533,750 533,750 896,25% $ 1,990,000 $1,430,000 12,704,000 3,176,000 1,436,571 1, 739,429 368,000 1,371,429 960,000 400,000 560,000 1,430,000 ncome Common dividends Net income retained Beginning retained earnings Ending retained earnings