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 Lydex Company Comparative Balance Sheet This Year Last Year $ 950,000 0 $ 1,190,000 300,000. Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity 2,660,000 3,590,000 260,000 7,460,000 9,500,000 $ 16,960,000 $4,000,000 3,660,000 7,660,000 7,000,000 2,300,000 9,300,000 $ 16,960,000 1,760,000 2,400,000 200,000 5,850,000 9,040,000 $ 14,890,000 $ 2,960,000 3,060,000 6,020,000 7,000,000 1,870,000 8,870,000 Total liabilities and stockholders' equity Lydex Company Comparative Income Statement and Reconciliation Sales (all on account) This Year $ 15,850,000 12,680,000 3,170,000 1,704,000 1,466,000 366,000 $ 14,890,000 Last Year $ 13,480,000 10,110,000 3,370,000 1,600,000 1,770,000 306,000 1,464,000 Cost of goods sold Gross margin Selling and administrative expenses. Net operating income Interest expense Net income before taxes Income taxes (30%) Net income Common dividends Net income retained Beginning retained earnings Ending retained earnings 1,100,000 330,000 439,200 770,000 1,024,800 340,000 512,400) 430,000 1,870,000 $ 2,300,000 512,400 1,357,600 $ 1,870,000