1. Please Do Horizontal and Vertical Analysis.

Comprehensive Ratio Analysis 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: Lydex Company Comparative Balance Sheet Last Year This Year Assets Current assets: Cash...... $ 960,000 $1,260,000 Marketable securities... 300,000 Accounts receivable, net ..... 2,700,000 1,800,000 Inventory ................... 3,900,000 2,400,000 240,000 180,000 Prepaid expenses.. Total current assets... 7,800,000 5,940,000 Plant and equipment, net...... 9,300,000 8,940,000 Total assets ....... $17,100,000 $14,880,000