The discussion is to discuss your financial analysis of Lydex Company p692, question 4.

Question 4, p692 Prepare a brief memo that summarizes how Lydex is performing relative to its competitors.

TO EARN EXTRA CREDIT:

Create a thread to respond to Question 4, p692 by posting your brief memo of Lydex, in 75 words or greater = 20-point extra credit.

You may reply to your thread or to another students, with a word count per thread or post of 50 words or greater = 10-point extra credit, up to 3 posts/ replies.

Lydex Company Comparative Balance Sheet This Year Last Year $ 960.000 o 2.700.000 3.900.000 240.000 7.800.000 9.300,000 $17.100.000 $ 1.260.000 300,000 1.800.000 2.400.000 180.000 5.940,000 8.940,000 $14, 880.000 Assets Current assets Cash Marketable securities Accounts receivable.net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% liabilities Stockholders' equity Common stock, $78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity.... $ 3.900.000 3.600.000 7.500.000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1.800.000 9.600.000 $17,100,000 7.800.000 1.320.000 9.120.000 $14,880,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $15.750,000 $12.480.000 Cost of goods sold 12.600.000 9.900.000 Gross margin... 3.150.000 2,580,000 Selling and administrative expenses 1.590.000 1.560,000 Net operating Income 1.560,000 1,020,000 Interest expense 350.000 300.000 Net income before taxes 1.200,000 720,000 Income taxes (30%) 350.000 216,000 Net income 840,000 504,000 Common dividends 360.000 252.000 Net income retained 480,000 252.000 Beginning retained earnings 1.320.000 1.068,000 Ending retained earnings $ 1.800.000 $ 1,320,000 To begin your assignment you gather the following financial data and ratios that are typical of compa nies in Lydex Company's industry: Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 23 1.2 30 days 60 days 9.5% 0.65 5.7 10 4. Prepare a brief memo that summarizes how Lydex is performing relative to its competit PROBLEM 14-16 Common-Size Financial Statements LO14-1 Refer to the financial statement data for Lydex Company given in Problem 14-15. Required: For both this year and last year: 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income. 3. Comment on the results of your analysis