To begin your assigment you gather the following financial data and ratios that

Question

To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry:

Present the balance sheet in common-size format. (Round your percentage answers to 1 decimal place (i.e., 0.123 is considered as 12.3.) Due to rounding, figures may not fully reconcile down a column.)

Present the income statement in common-size format down through net income. (Round your percentage answers to 1 decimal place i.e., 0.123 is considered as 12.3. Due to rounding, figures may not fully reconcile down a column.)

To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry:

Explanation / Answer

Lydex Company Common - Size balance Sheets This year Last year Assets Current Assest: Cash          1,040,000 5.9%     1,280,000 8.3% marketable Securities        300,000 Accounts receivable          3,020,000 17.1%     2,120,000 13.8% Inventory          3,680,000 20.8%     2,300,000 15.0% Prepaid Expenses             270,000 1.5%        210,000 1.4% Total Current Assest          8,010,000 45.3%     6,210,000 40.5% Plant and Equipment net          9,680,000 54.7%     9,130,000 59.5% Total Assest        17,690,000 100.0% 15,340,000 100.0% Liabilities and Stockholders Equity Liabilities: Current Liabilities 4090000 23.1% 3140000 20.5% Notes Payable 10% 3720000 21.0% 3120000 20.3% Total Liabilities 7810000 44.1% 6260000 40.8% Stockholders equity Common stock $ 75 par value 7500000 42.4% 7500000 48.9% Retained Earning 2380000 13.5% 1580000 10.3% Total Stockholders equity 9880000 55.9% 9080000 59.2% Total Liabilities and equity        17,690,000 100.0% 15,340,000 100.0% Lydex Company Common - Size balance Sheets This Year Last Year Sales 15940000 100.0% 14380000 100.0% Cost of Goods Sold 12752000 80.0% 10785000 75.0% Gross Margin 3188000 20.0% 3595000 25.0% Selling and administrative expenses 1216000 7.6% 1636000 11.4% Net Operating Income 1972000 12.4% 1959000 13.6% Interest Expenses 372000 2.3% 312000 2.2% net Income before tax 1600000 10.0% 1647000 11.5% Income Tax (30%) 480000 3.0% 494100 3.4% Net Income 1120000 7.0% 1152900 8.0%

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