[The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows:Lydex CompanyComparative Balance Sheet This YearLast YearAssets Current assets: Cash$ 860,000$ 1,100,000Marketable securities0300,000Accounts receivable, net2, 300, 0001,400,000 Inventory 3,500,0002, 000, 000Prepaid expenses 240, 000180,000 Total current assets6, 900, 0004, 980, 000 Plant and equipment, net9,320,0008, 950,000 Total assets$ 16,220,000$ 13,930,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities$ 3,910, 000$ 2,780,000 Note payable, 10 % 3,600,0003, 000, 000 Total liabilities 7, 510, 0005, 780,000 Stockholders' equity: Common stock, $75 par value 7, 500, 0007, 500,000 Retained earnings 1,210,000650,000 Total stockholders' equity8, 710, 0008, 150,000 Total liabilities and stockholders' equity$ 16, 220, 000$ 13,930,000Lydex CompanyComparative Income Statement and Reconciliation This YearLast YearSales (all on account)$ 15,760,000$ 12,580,000Cost of goods sold 12, 608, 0009, 435,000Gross margin3, 152, 0003, 145,000Selling and administrative expenses 1,592, 0001, 564,000 Net operating income 1, 560, 0001, 581,000Interest expense360, 000300, 000 Net income before taxes 1,200,0001,281,000Income taxes (30%) 360, 000384, 300 Net income840, 000896, 700Common dividends 280,000448, 350Net income retained 560, 000448, 350Beginning retained earnings650, 000201, 650 Ending retained earnings$ 1,210,000$ 650,000The following financial data and ratios are typical of companies in Lydex Company's industry:Current ratio2.3 Acid - test ratio 1.0 Average collection period30daysAverage sale period60days Return on assets 8.2% Debt-to-equity ratio0.7 Times interest earned ratio5.8 Price - earnings ratio10 Problem 16-15 Part 2 (Algo)2. To assess the company's stock market performance, compute the following for this year and last year. Assume Lydex's stock price at the end of this year and last year was $74 and $42, respectively. Note: Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.The earnings per share.The dividend yield ratio.The dividend payout ratio.The price - earnings ratio.The book value per share of common stock.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.] Lydex Company's financial statements for the last
two years are as follows:Lydex CompanyComparative Balance Sheet This YearLast YearAssets Current assets: Cash$
860,000$ 1,100,000Marketable securities0300,000Accounts receivable, net2, 300, 0001,400,000 Inventory
3,500,0002, 000, 000Prepaid expenses 240, 000180,000 Total current assets6, 900, 0004, 980, 000 Plant and equipment,
net9,320,0008, 950,000 Total assets$ 16,220,000$ 13,930,000 Liabilities and Stockholders' Equity Liabilities: Current
liabilities$ 3,910, 000$ 2,780,000 Note payable, 10 % 3,600,0003, 000, 000 Total liabilities 7, 510, 0005, 780,000
Stockholders' equity: Common stock, $75 par value 7, 500, 0007, 500,000 Retained earnings 1,210,000650,000 Total
stockholders' equity8, 710, 0008, 150,000 Total liabilities and stockholders' equity$ 16, 220, 000$ 13,930,000Lydex
CompanyComparative Income Statement and Reconciliation This YearLast YearSales (all on account)$ 15,760,000$
12,580,000Cost of goods sold 12, 608, 0009, 435,000Gross margin3, 152, 0003, 145,000Selling and administrative
expenses 1,592, 0001, 564,000 Net operating income 1, 560, 0001, 581,000Interest expense360, 000300, 000 Net income
before taxes 1,200,0001,281,000Income taxes (30%) 360, 000384, 300 Net income840, 000896, 700Common dividends
280,000448, 350Net income retained 560, 000448, 350Beginning retained earnings650, 000201, 650 Ending retained
earnings$ 1,210,000$ 650,000The following financial data and ratios are typical of companies in Lydex Company's
industry:Current ratio2.3 Acid - test ratio 1.0 Average collection period30daysAverage sale period60days Return on assets
8.2% Debt-to-equity ratio0.7 Times interest earned ratio5.8 Price - earnings ratio10 Problem 16-15 Part 2 (Algo)2. To
assess the company's stock market performance, compute the following for this year and last year. Assume Lydex's stock
price at the end of this year and last year was $74 and $42, respectively. Note: Round your "Percentage" answers to 1
decimal place and other intermediate and final answers to 2 decimal places.The earnings per share.The dividend yield
ratio.The dividend payout ratio.The price - earnings ratio.The book value per share of common stock.
Transcribed Image Text:[The following information applies to the questions displayed below.] Lydex Company's financial statements for the last two years are as follows:Lydex CompanyComparative Balance Sheet This YearLast YearAssets Current assets: Cash$ 860,000$ 1,100,000Marketable securities0300,000Accounts receivable, net2, 300, 0001,400,000 Inventory 3,500,0002, 000, 000Prepaid expenses 240, 000180,000 Total current assets6, 900, 0004, 980, 000 Plant and equipment, net9,320,0008, 950,000 Total assets$ 16,220,000$ 13,930,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities$ 3,910, 000$ 2,780,000 Note payable, 10 % 3,600,0003, 000, 000 Total liabilities 7, 510, 0005, 780,000 Stockholders' equity: Common stock, $75 par value 7, 500, 0007, 500,000 Retained earnings 1,210,000650,000 Total stockholders' equity8, 710, 0008, 150,000 Total liabilities and stockholders' equity$ 16, 220, 000$ 13,930,000Lydex CompanyComparative Income Statement and Reconciliation This YearLast YearSales (all on account)$ 15,760,000$ 12,580,000Cost of goods sold 12, 608, 0009, 435,000Gross margin3, 152, 0003, 145,000Selling and administrative expenses 1,592, 0001, 564,000 Net operating income 1, 560, 0001, 581,000Interest expense360, 000300, 000 Net income before taxes 1,200,0001,281,000Income taxes (30%) 360, 000384, 300 Net income840, 000896, 700Common dividends 280,000448, 350Net income retained 560, 000448, 350Beginning retained earnings650, 000201, 650 Ending retained earnings$ 1,210,000$ 650,000The following financial data and ratios are typical of companies in Lydex Company's industry:Current ratio2.3 Acid - test ratio 1.0 Average collection period30daysAverage sale period60days Return on assets 8.2% Debt-to-equity ratio0.7 Times interest earned ratio5.8 Price - earnings ratio10 Problem 16-15 Part 2 (Algo)2. To assess the company's stock market performance, compute the following for this year and last year. Assume Lydex's stock price at the end of this year and last year was $74 and $42, respectively. Note: Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.The earnings per share.The dividend yield ratio.The dividend payout ratio.The price - earnings ratio.The book value per share of common stock.
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