Question: I need help with the finding the return on assets and return on equity for this year and last year. Required information ( The following

I need help with the finding the return on assets and return on equity for this year and last year. Required information
(The following information applies to the questions displayed below)
Lydex Company's financial statements for the last two years are as follows:
\table[[Lydex Company Conparative Balance Stacet,This Year,Last Year],[Assets],[Current assets:,$ 960,000,$ 1,260,000],[Cash,0,300,0ee],[Marketable securities,2,780,aae,1,8ee,6ee],[Accounts receivable, net,3,990,200,2,48e,000],[Inventory,240,000,188,00e],[Prepaid expenses,7,8ee,6ee,5,948,00e],[Total current assets,9,380,000,8,948,0ee],[Total assets,$ 17,100,000,$ 14,888,000],[Liabilities and Stockholders' Equity],[Liabilities:,$ 3,990,000,$ 2,760,000],[Current liabilities,3,600,00e,3,000,0ee],[Total liabilities,7,590,600,5,760,000],[Stockholders' equity:,,7,8ee,00e],[Common stock, $ 78 par value,7,8e0,000,1,320,000],[Total stockholders' equity,9,600,000,9,120,900],[Total liabilities and stockholders " equity,$ 17,1e0,000,$ 14,888,000]]
\table[[\table[[Lysex Company],[Comparative Income Statement and Reconciliation]]],[,This Year,Last Year],[Sales (all on account),$ 15,750,000,$ 12,480,000],[Cost of goods sold,12,600,000,9,900,000],[Gross margin,3,159,0ed,2,580,000],[Selling and administrative expenses,1,590,000,1,560,000],[Net operating income,1,560,0ed,1,020,000],[Interest expense,360,0e0,300,000],[Net income before taxes,1,200,004,728,600],[Income taxes (30%),360,000,216,000],[Net incose,840,900,584,0ed],[Common dividends,360,900,252,000],[Net income retained,488,9*d,252,9ee],[Beginning retained earnings,1,320,000,1,068,000],[Ending retained earnings,$ 1,800,800,$ 1,320,000]]
The following financial data and ratios are typical of companies in Lydex Company's industry:
\table[[Current ratio,2.3],[Acid-test ratio,1.2],[Average collection period,30 days],[Average sale period,60 days],[Return on assets,9.54],[Debt-to-equity ratio,8.65],[Tises interest earned ratio,5.7],[Price-earnings ratio,10]]
Prov
I need help with the finding the return on assets

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!