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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys 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 $ 990,000 $ 1,230,000 300,000 1,920,000 2,300,000 200,000 0 2,820,000 3,630,000 260,000 7,700,000 9,580,000 5,950,000 9,080,000 Total current assets Plant and equipment, net Total assets $ 17,280,000 $15,030,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% $ 4,040,000 3,680,000 3,040,000 3,080,000 Total liabilities 7,720,000 6,120,000 Stockholders' equity: Common stock, $70 par value Retained earnings 7000,000 2,560,000 7,000,000 1,910,000 Total stockholders' equity 9,560,000 8,910,000 Total liabilities and stockholders' equity $ 17,280,000 $15,030,000