You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety...

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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: Assets Current assets: Lydex Company Comparative Balance Sheet This Year Last Year $ 945,000 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, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2,900,000 3,650,000 270,000 7,765,000 9,620,000 $ 1,250,000 300,000 2,000,000 2,000,000 210,000 5,760,000 9,100,000 $ 17,385,000 $ 14,860,000 $ 4,070,000 $ 3,080,000 3,700,000 7,770,000 7,000,000 2,615,000 9,615,000 3,100,000 6,180,000 7,000,000 1,680,000 8,680,000 $ 17,385,000 $ 14,860,000! Lydex Company Comparative Income Statement and Reconciliation 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%) Net income Common dividends = Net income retained Ces Beginning retained earnings Ending retained earnings This Year Last Year $ 15,910,000 $ 14,080,000 370,000 12,728,000 10,560,000 3,182,000 3,520,000 1,019, 143 1,624,000 2,162,857 1,896,000 310,000 1,792,857 1,586,000 537,857 475,800 1,255,000 1,110,200 320,000 935,000 1,680,000 555,100 555,100 1,124,900 $ 2,615,000 $ 1,680,000 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 Price-earnings ratio 2.3 1.2 32 days 60 days 9.8% 0.66 5.8 10 Times interest earned ratio Required: 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income. Complete this question by entering your answers in the tabs below. < Prev 7 of 15 Next > Required 1 Required 2 Present the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Common-Size Balance Sheets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and equity This Year Last Year 0.0 % 200 0.0 % 70 0.0 % 0.0 % 0.0 % 0.0 % 0.0 0.0 0.0 % 0.0 % Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Income Statements 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 This Year Last Year % % % < Required 1 % Required 2> 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: Assets Current assets: Lydex Company Comparative Balance Sheet This Year Last Year $ 945,000 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, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2,900,000 3,650,000 270,000 7,765,000 9,620,000 $ 1,250,000 300,000 2,000,000 2,000,000 210,000 5,760,000 9,100,000 $ 17,385,000 $ 14,860,000 $ 4,070,000 $ 3,080,000 3,700,000 7,770,000 7,000,000 2,615,000 9,615,000 3,100,000 6,180,000 7,000,000 1,680,000 8,680,000 $ 17,385,000 $ 14,860,000! Lydex Company Comparative Income Statement and Reconciliation 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%) Net income Common dividends = Net income retained Ces Beginning retained earnings Ending retained earnings This Year Last Year $ 15,910,000 $ 14,080,000 370,000 12,728,000 10,560,000 3,182,000 3,520,000 1,019, 143 1,624,000 2,162,857 1,896,000 310,000 1,792,857 1,586,000 537,857 475,800 1,255,000 1,110,200 320,000 935,000 1,680,000 555,100 555,100 1,124,900 $ 2,615,000 $ 1,680,000 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 Price-earnings ratio 2.3 1.2 32 days 60 days 9.8% 0.66 5.8 10 Times interest earned ratio Required: 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income. Complete this question by entering your answers in the tabs below. < Prev 7 of 15 Next > Required 1 Required 2 Present the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Common-Size Balance Sheets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and equity This Year Last Year 0.0 % 200 0.0 % 70 0.0 % 0.0 % 0.0 % 0.0 % 0.0 0.0 0.0 % 0.0 % Present the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.) Lydex Company Common-Size Income Statements 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 This Year Last Year % % % < Required 1 % Required 2>