You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets.
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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 companys financial statements, including comparing Lydexs performance to its major competitors. The companys financial statements for the last two years are as follows:Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets:Cash$ $ Marketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsPlant and equipment, netTotal assets$ $ Liabilities and Stockholders' EquityLiabilities:Current liabilities$ $ Note payable, Total liabilitiesStockholders' equity:Common stock, $ par valueRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity$ $ Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales all on account$ $ Cost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expenseNet income before taxesIncome taxes Net incomeCommon dividendsNet income retainedBeginning retained earningsEnding retained earnings$ $ To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry:Current ratioAcidtest ratioAverage collection perioddays Average sale period days Return on assetsDebttoequity ratioTimes interest earned ratioPriceearnings ratio You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $ per share and that at the end of last year it was $ For both this year and last year, compute: Round your "Percentage" answers to decimal place and other intermediate and final answers to decimal places.a The earnings per share.b The dividend yield ratio.c The dividend payout ratio.d The priceearnings ratio.e The book value per share of common stock.
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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