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:

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: To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's Industry Companys industry: Required: 1. You decide first to assess the company's performance in terms of debt management and profitabliity Compute the following for both this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio b. The debt-to-equity ratio. c. The gross margin percentage. d. The retum on total assets. (Total assets of the beginning of last year were $12,970,000 ) e. The return on equity, (Stockholders' equity ot the beginning of last year totaled $7,701,650. There has been no change in common stock over the last two years) I is the company's financial leverage positive or negative? a. The times interest earned ratio b. The debt-to-equity ratio c. The gross margin percentage d. The return on total assets. (Total assets at the beginning of last year were $12,970,000 ) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,701,650. There has been no change in common stock over the last two years) f. Is the company's financial leverage positive or negative