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: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Lydex Company Comparative Balance Sheet Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% This Year $ 870,000 $ 1,110,000 0 11 300,000 1,440,000 2,100,000 180,000 5,130,000 8,960,000 $ 14,090,000 2,340,000 3,510,000 240,000 6,960,000 9,340,000 $ 16,300,000 Last Year $ 3,920,000 3,600,000 $ 2,800,000 3,000,000

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: 1 You decide first to assess the company's performance in terms of debt management and profitablity. Compute the following for both this year and last year (Round your "Percentage" onswers to 1 decimal ploce and other answers to 2 decimal places.) a. The times interest eamed 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 $12,980,000 ). e. The return on equity. (\$tockholders' equity at the beginning of last year totaled $7,834,300. There has been no change in common stock over the last two years.) If is the company's financial leverage positive or negative? To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry. 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: 1 You decide first to assess the company's performance in terms of debt management and profitablity. Compute the following for both this year and last year (Round your "Percentage" onswers to 1 decimal ploce and other answers to 2 decimal places.) a. The times interest eamed 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 $12,980,000 ). e. The return on equity. (\$tockholders' equity at the beginning of last year totaled $7,834,300. There has been no change in common stock over the last two years.) If is the company's financial leverage positive or negative? To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry