You have just been hired as a financial analyst for Lydex Company, a manufacturer of...

80.2K

Verified Solution

Question

Accounting

image
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety heimets. 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 This Tear Current asset 880,000.120,000 300,000 1,480,000 200,000 Accounts receivable, net 2,380,000 3,520,000 Inventory Total current assets Plant and equipment, set Total assets 16,380,000 4,250.000 Liabilieles 3.930,000 620,000 2,820,000 ,020,0DO Currest iabliities Sote payable, 10% Total 1abiiities Conmon stock, $75 par value Retaised earmings 500,000 ,500,0D0 Total stockholders eguity Total 1iabilities and stockholders equity Sales (all en account) Cost of goods sold Gross argin 15,780,000 S 12,780,000 ,195,000 572,00 362,0001,623,000 302,000 ,321,000 .156,000 94,000 62,000 00,00 80,000 910,000 Net operating iIncome Interest expense Income taxes (300) 96,30 462,350 47.650 1,330,00 Problem 15-15 Part 2 2. You decide next to assess the company's stock market performance Assume that Lydex's stock price at the end of this year is $7 per share and that at the end of last year it was $46 For both this year and lest year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places ) b. The dividend yield ratio c. The dividend payout ratio d. The price-eamings ratio e. The book value per share of common stock

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students