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 Marketable securities Accounts receivable, net Inventory Prepaid expenses $ 1,000,000 $ 1,240,000 300,000 1,960,000 2,400,000 210,000 0 2,860,000 3,640,000 270,000 Total current assets Plant and equipment, net 7,770,000 9,600,000 6,110,000 9,090,000 Total assets $17,370,000 $15,200,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% $ 4,050,000 3,700,000 $ 3,060,000 3,100,000 Total liabilities 7,750,000 6,160,000 Stockholders' equity: Common stock, $75 par value Retained earnings 7500,000 2,120,000 7500,000 1,540,000 Total stockholders' equity 9,620,000 9,040,000 Total liabilities and stockholders' equity $17,370,000 $15,200,000