Business, 16.01.2020 17:31 jakebuttone

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 companycomparative balance sheet this year last yearassets current assets: cash $1,010,000 $1,250,000marketable securities 0 300,000accounts receivable, net 2,900,000 2,000,000inventory 3,650,000 2,000,000prepaid expenses 270,000 210,000total current assets 7,830,000 5,760,000plant and equipment, net 9,620,000 9,100,000total assets $17,450,000 $14,860,000liabilities and stockholders' equity liabilities: current liabilities $4,060,000 $3,080,000note payable, 10% 3,700,000 3,100,000total liabilities 7,760,000 6,180,000stockholders' equity: common stock, $70 par value 7,000,000 7,000,000retained earnings 2,690,000 1,680,000total stockholders' equity 9,690,000 8,680,000total liabilities and stockholders' equity $7,450,000 $14,860,000lydex companycomparative income statement and reconciliationthis year last yearsales (all on account) $15,910,000 $14,080,000cost of goods sold 12,728,000 10,560,000gross margin 3,182,000 3,520,000selling and administrative expenses 912,000 1,624,000net operating income 2,270,000 1,896,000interest expense 370,000 310,000net income before taxes 1,900,000 1,586,000income taxes (30%) 570,000 475,800net income 1,330,000 1,110,200common dividends 320,000 555,100net income retained 1,010,000 555,100beginning retained earnings 1,680,000 1,124,900ending retained earnings $ 2,690,000 $ 1,680,000to begin your assignment you gather the following financial data and ratios that are typical of companies in lydex company’s industry: current ratio 2.3 acid-test ratio 1.1 average collection period 32 daysaverage sale period 60 daysreturn on assets 9.8 %debt-to-equity ratio 0.7 times interest earned ratio 5.8 price-earnings ratio 10 you decide next to assess the company’s stock market performance. assume that lydex’s stock price at the end of this year is $104 per share and that at the end of last year it was $72. for both this year and last year, compute: (round your "percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal ) the earnings per share.(b) the dividend yield ratio.(c). the dividend payout ratio.(d) the price-earnings ratio.(e) the book value per share of common stock.

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