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 $ 970,000 $ 1,210,000 300,000 Marketable 0 securities Accounts 2,740,000 1, 840,000 3,610,000 2,100,000 200,000 7, 580,000 5,650,000 receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders Equity Liabilities 260,000 9,540,000 9,060,000 $17,120,000 $14, 710,000 Current liabilities Note payable, $ 4,020,000 $ 3,000,000 10% 3,680 ,000 3,080 ,000 Total liabilities 7,700,000 6,080,000 Stockholders' equity: Common stock, $70 par value Retained earnings 2,420,000 1,630,000 7,000,000 7,000,000 Total stockholders equity Total liabilities and stockholders'$17,120,000 $14,710,000 9,420,000 8,630,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year $15,870,000 $13,680,000 12,696,000 10, 260,000 3,174,000 3,420,000 Sales (all on account) Cost of goods 6 sold Gross margin Selling and administrative 1,106,000 1,608,000 expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividend:s Net income retained Beginning retained earnings Ending retained earnings 2,068,000 1,812,000 308,000 1,700,000 1,504,000 451,200 1,190,000 1,052,800 526,400 526,400 368,000 510,000 400,000 790,000 1,630,000 1,103,600 $ 2,420,000 $ 1,630,000 To begin your assignment you gather the following financial data and ratios that are ypical of companies in Lydex Company's industry: Current ratio Acid-test ratio 1.2 Average collection 40days Average sale period Return on assets 9.4% Debt-to-equity 0.67 ratio Times interest earned ratio Price-earnings ratio 60 days 5.7 10 equired 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. Show less A Requ... Requ 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.) Show less Lydex Company Common-Size Balance Sheets This Year Last Year Assets Current assets Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment net Total assets earned ratio Price-earnings ratio 10 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. Show less A Requ... Requ... 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.) Show lessA Lydex Company Common-Size Income Statements This Year Last Year 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 Required 2 Required 1