Question: need help with the math! for d., e, f, and g Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, L014-4, LO14-5, LO14-6] [The following information applies
![Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, L014-4, LO14-5, LO14-6] [The following](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/09/66e939eb3e6a5_74666e939ead3127.jpg)

Problem 14-15 Comprehensive Ratio Analysis (LO14-2, LO14-3, L014-4, LO14-5, LO14-6] [The following information applies to the questions displayed below.) 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 This Year Last Yanr Assets Current assets Canh Marketable necurities Accounts receivable, net Inventory Prepaid expenses Total current Assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payablo, 104 Total liabilities Stockholders' equity. Common stock, $70 par valve Retained earnings Total stockholders' equity Total limbilities and stockholders' equity 970,000 0 2,740,000 3,610,000 260,000 7,580,000 9.540,000 $17, 120,000 1,210,000 300,000 1,840,000 2,100,000 200.000 5,650,000 9,060,000 $14,710,000 $4,020,000 3,680,000 2.700.000 $ 3,000,000 3.080.000 6,000,000 3,000,000 2.420.000 9,420,000 817,120,000 7,000,000 1.620.000 8.630,000 $14.710,000 Lydex Company Comparative Incon Statement and Reconciliation This Year Lant Yon Balon (all an account) $ 15,870,000 $ 13,680,000 Cont of good wold 12,696,000 10,260,000 Gross margin 3, 174,000 3,420,000 Selling and administrative expenses 1,106,000 1,600,000 Net operating income 2,069,000 1,812,000 Interest expense 360,000 308,000 Net income before taxes 1,700,000 1,504,000 Income taxen (308) 510,000 451,200 Net income 1,190,000 1,052,800 Comeon dividends 400,000 526,400 Nat income retained 790,000 526,400 Beginning retained earnings 1,630,000 1.103,600 Ending retained earninga $ 2,420,000 $ 1,630,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's Industry Current ratio Acid-test ratio Average collection period Average sale period Return on annet Debt-to-equity ratio Times Interest earned ratio Price-earnings ratio 2.4 1.1 40 days 66 day 5.7 10 3. You decide, ninally, to assess the company's liquidity and asset management. For both this year and last year, compute: a. Working capital b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratio. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts recelvable at the beginning of last year totaled $1,680,000) (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 $2,040,000.) (Use 365 days in a year. Round your Intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (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 $13,080,000. (Round your final answers to 2 decimal places.) Last Ye 2,650,000 1 BA This Year 3,500,000 1.89 0.92 83.05 days days days a. Working capital b. The current ratio The acid-test ratio d. The average collection period The average sale period The operating cycle 9. The total asset lumover 1.12 days day days
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
