Required information [The following information applies to the questions displayed below.] Lydex Company's financial statements for...

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Required information [The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year 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: $ 1,030,000 0 2,980,000 3,670,000 270,000 7,950,000 9,660,000 $ 17,610,000 $ 1,270,000 300,000 2,080,000 2,200,000 210,000 6,060,000 9,120,000 $ 15,180,000 $ 4,080,000 3,720,000 7,800,000 $ 3,120,000 3,120,000 Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,000,000 2,810,000 9,810,000 $ 17,610,000 6,240,000 7,000,000 1,940,000 8,940,000 $ 15,180,000 Lydex Company Comparative Income Statement and Reconciliation 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 This Year $ 15,930,000 12,744,000 3,186,000 1,114,000 Last Year $ 14,280,000 10,710,000 3,570,000 1,632,000 2,072,000 1,938,000 372,000 312,000 1,700,000 510,000 487,800 1,138,200 569,100 1,190,000 320,000 870,000 1,940,000 $ 2,810,000 1,626,000 569,100 1,370,900 $ 1,940,000 The following financial data and ratios are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale periodi 2.3 1.1 32 days 60 days Return on assets 8.5% Debt-to-equity ratio 0.7 Times interest earned ratio. 5.7 Price-earnings ratio 10 3. To assess the company's liquidity and asset management, compute the following for this year and last year: a. Working capital. b. The current ratio. Note: Round your final answers to 2 decimal places. c. The acid-test ratio. Note: Round your final answers to 2 decimal places. d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,740,000.) Note: Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place. e. The average sale period. (The inventory at the beginning of last year totaled $2,100,000.) Note: Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place. f. The operating cycle. Note: Round your intermediate calculations and final answers to 2 decimal place. g. The total asset turnover. (The total assets at the beginning of last year totaled $13,140,000.) Note: Round your final answers to 2 decimal places. a. Working capital This Year Last Year b. The current ratio c. The acid-test ratio d. The average collection period days days e. The average sale period days days 1. The operating cycle days days g. The total asset turnover Required information [The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year 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: $ 1,030,000 0 2,980,000 3,670,000 270,000 7,950,000 9,660,000 $ 17,610,000 $ 1,270,000 300,000 2,080,000 2,200,000 210,000 6,060,000 9,120,000 $ 15,180,000 $ 4,080,000 3,720,000 7,800,000 $ 3,120,000 3,120,000 Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,000,000 2,810,000 9,810,000 $ 17,610,000 6,240,000 7,000,000 1,940,000 8,940,000 $ 15,180,000 Lydex Company Comparative Income Statement and Reconciliation 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 This Year $ 15,930,000 12,744,000 3,186,000 1,114,000 Last Year $ 14,280,000 10,710,000 3,570,000 1,632,000 2,072,000 1,938,000 372,000 312,000 1,700,000 510,000 487,800 1,138,200 569,100 1,190,000 320,000 870,000 1,940,000 $ 2,810,000 1,626,000 569,100 1,370,900 $ 1,940,000 The following financial data and ratios are typical of companies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale periodi 2.3 1.1 32 days 60 days Return on assets 8.5% Debt-to-equity ratio 0.7 Times interest earned ratio. 5.7 Price-earnings ratio 10 3. To assess the company's liquidity and asset management, compute the following for this year and last year: a. Working capital. b. The current ratio. Note: Round your final answers to 2 decimal places. c. The acid-test ratio. Note: Round your final answers to 2 decimal places. d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,740,000.) Note: Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place. e. The average sale period. (The inventory at the beginning of last year totaled $2,100,000.) Note: Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place. f. The operating cycle. Note: Round your intermediate calculations and final answers to 2 decimal place. g. The total asset turnover. (The total assets at the beginning of last year totaled $13,140,000.) Note: Round your final answers to 2 decimal places. a. Working capital This Year Last Year b. The current ratio c. The acid-test ratio d. The average collection period days days e. The average sale period days days 1. The operating cycle days days g. The total asset turnover