Problem 14-15 (Algo) Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, 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 askedyou to perform a comprehensive analysis of the company's financial statements, including comparing Lydex's performanceto its major competitors. The company's financial statements for the last two years are as follows:AssetsCurrent assets:CashMarketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsPlant and equipment, netTotal assetsLiabilities and Stockholders' EquityLiabilities:Current liabilitiesNote payable, 10%Total liabilitiesLydex CompanyComparative Balance SheetStockholders' equity:Common stock, $75 par valueRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equitySales (all on account)Cost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expenseNet income before taxesIncome taxes (30%)Net incomeCommon dividendsNet income retainedBeginning retained earningsEnding retained earnings.Current ratioAcid-test ratioAverage collection periodAverage sale periodReturn on assetsLydex CompanyComparative Income Statement and ReconciliationThis Year$ 15,860,00012,688,0003,172,0001,006,0002,166,000366,000Debt-to-equity ratioTimes interest earned ratioPrice-earnings ratioProblem 14-15 Part 1 (Algo)2.41.1This Year40 days60 days.a. The times interest earned ratiob. The debt-to-equity ratioc. The gross margin percentaged. The return on total assetse. The return on equityf. Is the company's financial leverage positive or negative?$ 960,0002,700,0003,600,000260,0007,520,0009,520,000$ 17,040,0009.3%0.75.910$ 4,010,0003,660,0007,670,0007,500,0001,870,0009,370,000$ 17,040,0001,800,000540,0001,260,000400,000860,0001,010,000$ 1,870,0000To begin your assignment you gather the following financial data and ratios that are typical of companies in LydexCompany's industry:Last YearThis Year$ 1,200,000300,0001,800,0002,000,000200,000%%%5,500,0009,050,000$ 14,550,000$ 2,980,0003,060,0006,040,0007,500,0001,010,0008,510,000$ 14,550,000Last Year$ 13,580,00010,185,0003,395,000Required:1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for boththis year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.)1,604,0001,791,000306,0001,485,000445,5001,039,500519,750519,750490,250$ 1,010,000a. The times interest earned ratio.b. The debt-to-equity ratio.c. The gross margin percentage.d. The return on total assets. (Total assets at the beginning of last year were $13,070,000.)e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,990,250. There has been no change in commonstock over the last two years.)f. Is the company's financial leverage positive or negative?Last Year%%%

We often use financial ratios to determine the financial health of a company.Financial ratios are…

1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio. b. The debt-to-equity ratio. c. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $13,070,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,990,250. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative?

1. You decide first to assess the company's performance in terms of debt management and profitability. Compute the following for both this year and last year: (Round your "Percentage" answers to 1 decimal place and other answers to 2 decimal places.) a. The times interest earned ratio. b. The debt-to-equity ratio. c. The gross margin percentage. d. The return on total assets. (Total assets at the beginning of last year were $13,070,000.) e. The return on equity. (Stockholders' equity at the beginning of last year totaled $7,990,250. There has been no change in common stock over the last two years.) f. Is the company's financial leverage positive or negative?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.4E

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Please answer D, E and F Problem 14-15 (Algo) Comprehensive Ratio Analysis [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6] Skip to question [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 CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 860,000 $ 1,100,000 Marketable securities 0 300,000 Accounts receivable, net 2,300,000 1,400,000 Inventory 3,500,000 2,000,000 Prepaid expenses 240,000 180,000 Total current assets 6,900,000 4,980,000 Plant and equipment, net 9,320,000 8,950,000 Total assets $ 16,220,000 $ 13,930,000 Liabilities and Stockholders' Equity…
Help me with required D,E,F,G only 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 CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 940,000 $ 1,180,000 Marketable securities 0 300,000 Accounts receivable, net 2,620,000 1,720,000 Inventory 3,580,000 2,300,000 Prepaid expenses 250,000 190,000 Total current assets 7,390,000 5,690,000 Plant and equipment, net 9,480,000 9,030,000 Total assets $ 16,870,000 $ 14,720,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,990,000 $…
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Required information Skip to question [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 CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 1,020,000 $ 1,260,000 Marketable securities 0 300,000 Accounts receivable, net 2,940,000 2,040,000 Inventory 3,660,000 2,100,000 Prepaid expenses 270,000 210,000 Total current assets 7,890,000 5,910,000 Plant and equipment, net 9,640,000 9,110,000 Total assets $ 17,530,000 $ 15,020,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 4,070,000…
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