- You Have Just Been Hired As A Financial Analyst For Lydex Company A Manufacturer Of Safety Helmets Your Boss Has Asked 1 (146.26 KiB) Viewed 9 times
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: Assets Current assets: Cash Marketable securities 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, $75 par value Retained earnings Lydex
Company Comparative Balance Sheet Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) 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 Current ratio Acid-test ratio Average collection period Average sale period. Return on assets Lydex
Company Comparative Income
Statement and Reconciliation This Year $ 15,760,000 12,608,000 3,152,000 1,863,429 1,288,571 360,000 620 621 928,571 278,571 Debt-to-equity ratio. Times interest earned ratio Price-earnings ratio This Year 30 days 60 days 8.2% $ 820,000 0 0.66 5.8 10 2,300,000 3,500,000 240,000 $ 3,910,000 3,600,000 7,510,000 5,130,000 6,860,000 9,320,000 8,950,000 $ 16,180,000 $ 14,080,000 Last Year 650,000 280,000 $ 1,250,000 300,000 1,400,000 2,000,000 180,000 7,500,000 7,500,000 1,170,000 800,000 8,670,000 8,300,000 $ 16,180,000 $ 14,080,000 370,000 800,000 $ 1,170,000 $ 2,780,000 3,000,000 5,780,000 Last Year $ 12,580,000 9,435,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex
Company's industry: 2.3 1.2 3,145,000 1,564,000 1,581,000 2047000 300,000 000000 1,281,000 384,300 896,700 448,350 448,350 351,650 $ 800,000 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. Required 1 Required 2 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.) Assets Current assets: Cash Marketable securities 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% Lydex
Company Common-Size Balance Sheets This Year Total liabilities Stockholders' equity: Common stock, $75 par value Retained earnings Total stockholders' equity Total liabilities and equity % % % % Required 1 Last Year % % % % Required 2 >
Complete this
question by entering your answers in the tabs below. Required 1 Required 2 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.) Lydex
Company Common-Size Income Statements This 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 1 Last Year % % Required 2