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 $ $1,040,000$ $ $1,280,000$

Marketable securities $0300,000$

Accounts receivable, net $3,020,0002,120,000$

Inventory $3,680,0002,300,000$

Prepaid expenses $270,000210,000$

Total current assets $8,010,0006,210,000$

Plant and equipment, net $9,680,0009,130,000$

Total assets $ $17,690,000$ $ $15,340,000$

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ $4,090,000$ $ $3,140,000$

Note payable, $10\%3,720,0003,120,000$

Total liabilities $7,810,0006,260,000$

Stockholders' equity:

Common stock, $$75$ par value $7,500,0007,500,000$

Retained earnings $2,380,0001,580,000$

Total stockholders' equity $9,880,0009,080,000$

Total liabilities and stockholders' equity $ $17,690,000$ $ $15,340,000$

Lydex Company

Comparative Income Statement and Reconciliation

This Year Last Year

Sales $($all on account$)$ $ $15,940,000$ $ $14,380,000$

Cost of goods sold $12,752,00010,785,000$

Gross margin $3,188,0003,595,000$

Selling and administrative expenses $1,216,0001,636,000$

Net operating income $1,972,0001,959,000$

Interest expense $372,000312,000$

Net income before taxes $1,600,0001,647,000$

Income taxes $(30\%)480,000494,100$

Net income $1,120,0001,152,900$

Common dividends $320,000576,450$

Net income retained $800,000576,450$

Beginning retained earnings $1,580,0001,003,550$

Ending retained earnings $ $2,380,000$ $ $1,580,000$

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

Current ratio $2\mathrm{.}3$

Acid$-$test ratio $1\mathrm{.}2$

Average collection period $32$ days

Average sale period $60$ days

Return on assets $8\mathrm{.}6\%$

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

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

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 $$1,750,000.)$

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 $$2,110,000.)$

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 $$13,150,000.)$

Note: Round your final answers to $2$ decimal places.