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 Company Comparative 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 $ 2,940,000 Note payable, 10%   3,660,000   3,060,000 Total liabilities   7,650,000   6,000,000 Stockholders' equity:         Common stock, $75 par value   7,500,000   7,500,000 Retained earnings   1,720,000   1,220,000 Total stockholders' equity   9,220,000   8,720,000 Total liabilities and stockholders' equity $ 16,870,000 $ 14,720,000     Lydex Company Comparative Income Statement and Reconciliation   This Year Last Year Sales (all on account) $ 15,840,000 $ 13,380,000 Cost of goods sold   12,672,000   10,035,000 Gross margin   3,168,000   3,345,000 Selling and administrative expenses   1,602,000   1,596,000 Net operating income   1,566,000   1,749,000 Interest expense   366,000   306,000 Net income before taxes   1,200,000   1,443,000 Income taxes (30%)   360,000   432,900 Net income   840,000   1,010,100 Common dividends   340,000   505,050 Net income retained   500,000   505,050 Beginning retained earnings   1,220,000   714,950 Ending retained earnings $ 1,720,000 $ 1,220,000     To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry:         Current ratio 2.4   Acid-test ratio 1.1   Average collection period 40 days Average sale period 60 days Return on assets 9.1 % Debt-to-equity ratio 0.7   Times interest earned ratio 5.7   Price-earnings ratio 10     rev: 04_27_2020_QC_CS-209476 d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,650,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $2,010,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $13,050,000.) (Round your final answers to 2 decimal places.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Company
Comparative 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 $ 2,940,000
Note payable, 10%   3,660,000   3,060,000
Total liabilities   7,650,000   6,000,000
Stockholders' equity:        
Common stock, $75 par value   7,500,000   7,500,000
Retained earnings   1,720,000   1,220,000
Total stockholders' equity   9,220,000   8,720,000
Total liabilities and stockholders' equity $ 16,870,000 $ 14,720,000
 

 

Lydex Company
Comparative Income Statement and Reconciliation
  This Year Last Year
Sales (all on account) $ 15,840,000 $ 13,380,000
Cost of goods sold   12,672,000   10,035,000
Gross margin   3,168,000   3,345,000
Selling and administrative expenses   1,602,000   1,596,000
Net operating income   1,566,000   1,749,000
Interest expense   366,000   306,000
Net income before taxes   1,200,000   1,443,000
Income taxes (30%)   360,000   432,900
Net income   840,000   1,010,100
Common dividends   340,000   505,050
Net income retained   500,000   505,050
Beginning retained earnings   1,220,000   714,950
Ending retained earnings $ 1,720,000 $ 1,220,000
 

 

To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry:

 

     
Current ratio 2.4  
Acid-test ratio 1.1  
Average collection period 40 days
Average sale period 60 days
Return on assets 9.1 %
Debt-to-equity ratio 0.7  
Times interest earned ratio 5.7  
Price-earnings ratio 10  
 

rev: 04_27_2020_QC_CS-209476

d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,650,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.)

e. The average sale period. (The inventory at the beginning of last year totaled $2,010,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.)

f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.)

g. The total asset turnover. (The total assets at the beginning of last year totaled $13,050,000.) (Round your final answers to 2 decimal places.)

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