0.00 points You have just been hired as a financial analyst for Lydex Company, a

Question

0.00 points 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 fnancial statements, including comparng Lydex's performance to its m or competitors. The company's financial statements for the last two years are as follows: Lydex Company Balance Sheet This Year Last Year Assets Current assets: $ 890,000 Cash Marketable secuites Accounts receivable, net nventory Prepaid expenses 2420,000 3,530,000 240,000 1,020,000 300,000 1,520,000 2,300,000 180,000 Total current assets Piant and equipment, net 7080,000 9,380,000 5,320,000 8,980,000 Total assets $16,460,000 $14,300,000 Liabilities and Stockholders Equity Liabilties Current labilities Note payatle, 10% $ 3,960,000 2,860,000 3,020,000 3,620,000 Total labilities 7,580,000 5,880,000 Stockholders equity Common stock, $70 par value Retained earmings 7,000,000 7,000,000 1880,000 8,880,000 $16,460,000 1420,000 8,420,000 14,300,000 Total stockholders' equity Total Sabilities and stockholders' equity

Explanation / Answer

This year % Last year   % Current asset cash 890000 5.41%      1,020,000 7.13% securities 0 0.00%          300,000 2.10% accounts receivable 2420000 14.70%      1,520,000 10.63% inventory 3530000 21.45%      2,300,000 16.08% prepaid exp 240000 1.46%          180,000 1.26% total current asset 7080000 43.01%      5,320,000 37.20% plant and equipemnt 9380000 56.99%      8,980,000 62.80% total asset 16460000 100.00%    14,300,000 100.00% Liabilities Current liabilities 3960000 24.06%      2,860,000 20.00% notes payable 3620000 21.99%      3,020,000 21.12% Total Liabilities 7580000 46.05%      5,880,000 41.12% Stock holders equity common stock 7000000 42.53% 7000000 48.95% retained earnings 1880000 11.42%      1,420,000 9.93% total equity 8880000 53.95%      8,420,000 58.88% total libailities and equity 16460000 100.00% 14300000 100.00% This year % Last year % Sales 15790000 100.00%    12,880,000 100.00% cost of goods sold 12632000 80.00%      9,660,000 75.00% gross margin 3158000 20.00% 3220000 25.00% selling and admin exp 1638857 10.38%      1,576,000 12.24% net operating income 1519143 9.62% 1644000 12.76% interest exp 362000 2.29%          302,000 2.34% net income before taxes 1157143 7.33% 1342000 10.42% income taxes 347143 2.20%          402,600 3.13% net income 810000 5.13% 939400 7.29%

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