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:

Requirements: Balance Sheet and Income Statement.

Thank you

Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,790,000 $ 12,880,000 Cost of goods sold 12,632,000 9,660,000 Gross margin Selling and administrative expenses 3,158,000 1,638,857 3,220,000 1,576,000 Net operating income Interest expense 1,519,143 362,000 1,644,000 302,000 Net income before taxes Income taxes (30%) 1,157,143 347,143 1,342,000 402,600 Net income Common dividends 810,000 350,000 939,400 469,700 Net income retained Beginning retained earnings 460,000 1,420,000 469,700 950,300 Ending retained earnings $ 1,880,000 $ 1,420,000 Last Year Comparative Balance Sheet This Year Assets Current assets: Cash $ 890,000 Marketable securities 0 Accounts receivable, net 2,420,000 Inventory 3,530,000 Prepaid expenses 240,000 $ 1,020,000 300,000 1,520,000 2,300,000 180,000 Total current assets Plant and equipment, net 7,080,000 9,380,000 5,320,000 8,980,000 Total assets $ 16,460,000 $ 14,300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% $ 3,960,000 3,620,000 $ 2,860,000 3,020,000 Total liabilities 7,580,000 5,880,000 Stockholders' equity: Common stock, $70 par value Retained earnings 7,000,000 1,880,000 7,000,000 1,420,000 Total stockholders' equity 8,880,000 8,420,000 Total liabilities and stockholders' equity $16,460,000 $ 14,300,000 Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 2.3 1.2 40 days 60 days 8.5 % 0.69 5.8 10 Common-Size Balance Sheets This Year Last Year Assets Current assets: Cash % % Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets 0.0 0.0 Plant and equipment, net Total assets 0.0 % 0.0 % Liabilities and Stockholders' Equity Liabilities: Current liabilities % % Note payable, 10% Total liabilities 0.0 0.0 Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and equity 0.0 0.0 0.0 % 0.0 % 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 % %