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 S 1,050,000 0 3,060,000 3,400,000 240,000 1,360,000 300,000 2,160,000 2,400,000 220,000 7,750,000 9,700,000 6,440,000 9,140,000 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity $17,450,000 $15,580,000 Liabilities: Current liabilities Note payable, 10% S 4,400,000 3,720,000 3,160,000 3,120,000 Total liabilities 8,120,000 6,280,000 Stockholders' equity: Common stock, $70 par value Retained earnings 7,000,000 2,330,000 7,000,000 2,300,000 9,300,000 $17,450,000 $15,580,000 Total stockholders' equity 9,330,000 Total liabilities and stockholders' equity