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$[$The following information applies to the questions displayed below.$]$

Lydex Company's financial statements for the last two years are as follows:

Lydex Company

Comnarative Income Statement and Reconciliation

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Question $13-$ Home...

$\backslash (\backslash$mathrm$\{$N$\}\_\{\backslash$mathrm$\{$T$\}\}\backslash )$ COLOR THE WORLD...

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$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Lydex Company $\backslash \backslash$

Comparative Income Statement and

$\backslash$end$\{$tabular$\}$ & Reconciliation This Year & Last Year $\backslash \backslash$

$\backslash$hline Sales $($all on account$)$ & $\backslash$$ $15,910,000$ & $\backslash$$ $14,080,000\backslash \backslash$

$\backslash$hline Cost of goods sold & $12,728,000$ & $10,560,000\backslash \backslash$

$\backslash$hline Gross margin & $3,182,000$ & $3,520,000\backslash \backslash$

$\backslash$hline Selling and administrative expenses & $912,000$ & $1,624,000\backslash \backslash$

$\backslash$hline Net operating income & $2,270,000$ & $1,896,000\backslash \backslash$

$\backslash$hline Interest expense & $370,000$ & $310,000\backslash \backslash$

$\backslash$hline Net income before taxes & $1,900,000$ & $1,586,000\backslash \backslash$

$\backslash$hline Income taxes $(30\backslash \%)$ & $570,000$ & $475,800\backslash \backslash$

$\backslash$hline Net income & $1,330,000$ & $1,110,200\backslash \backslash$

$\backslash$hline Common dividends & $320,000$ & $555,100\backslash \backslash$

$\backslash$hline Net income retained & $1,010,000$ & $555,100\backslash \backslash$

$\backslash$hline Beginning retained earnings & $1,680,000$ & $1,124,900\backslash \backslash$

$\backslash$hline Ending retained earnings & $\backslash$$ $2,690,000$ & $\backslash$$ $1,680,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

The following financial data and ratios are typical of companies in Lydex Company's industry:

$\backslash$begin$\{$tabular$\}\{$lc$\}$

Current ratio & $2\mathrm{.}3\backslash \backslash$

Acid$-$test ratio & $1\mathrm{.}1\backslash \backslash$

Average collection period & $32$ days $\backslash \backslash$

Average sale period & $60$ days $\backslash \backslash$

Return on assets & $\backslash (9\mathrm{.}8\backslash \%\backslash )\backslash \backslash$

Debt$-$to$-$equity ratio & $0\mathrm{.}7\backslash \backslash$

Times interest earned ratio & $5\mathrm{.}8\backslash \backslash$

Price$-$earnings ratio & $10$

$\backslash$end$\{$tabular$\}$

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$3.$ 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 $\backslash$$$1,720,000.)$

Note: Use $365$ days in a year. Round your intermediate calculations and final answers to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal place.

e$.$ The average sale period. $($The inventory at the beginning of last year totaled $\backslash$$$2,080,000.)$

Note: Use $365$ days in a year. Round your intermediate calculations and final answers to $\backslash (\backslash$mathbf$\{2\}\backslash )$ 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 $\backslash (\backslash$$ $13,120,000\backslash ).)$

Note: Round your final answers to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places.