Please correct Solution with Explanation and do not give image format 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'sperformance to its major competitors. The company's financial statements for the last two years are as follows:Lydex CompanyComparative Balance SheetAssetsCurrent assets:CashMarketable securitiesAccounts receivable, netInventoryPrepaid expensesTotal current assetsPlant and equipment, netTotal assetsLiabilities and Stockholders' EquityLiabilities:Current liabilitiesNote payable, 10%Total liabilitiesStockholders' equity:Common stock, $70 par valueRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityLydex CompanyComparative Income Statement and ReconciliationThis Year$ 870,00002,340,0003,510,000240,0006,960,0009,340,000$ 16,300,000$ 3,920,0003,600,0007,520,0007,000,0001,780,0008,780,000$ 16,300,000This YouLast Year$ 1,110,000300,0001,440,0002,100,000180,0005,130,0008,960,000$ 14,090,000$ 2,800,0003,000,0005,800,0007,000,0001,290,0008,290,000$ 14,090,000+ You Sales (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 earningsAverage collection periodAverage sale periodReturn on assets2.31.0455,700834,300$ 1,290,000To begin your assignment you gather the following financial data and ratios that are typical of companies in LydexCompany's industry:Current ratioAcid-test ratio30608.3%0.75.9This Year$ 15,770,00012,616,0003,154,0001,594,0001,560,000360,0001,200,000360,000daysdays10840,000350,000490,0001,290,000$ 1,780,000Last Year$ 12,680,0009,510,0003,170,0001,568,0001,602,000300,0001,302,000390,600911,400455,700Debt-to-equity ratioTimes interest earned ratioPrice-earnings ratioProblem 16-15 Part 3 (Algo)3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute:a. Working capital.b. The current ratio. (Round your final answers to 2 decimal places.)c. The acid-test ratio. (Round your final answers to 2 decimal places.)d. The average collection period. (The accounts receivable at the beginning of last year totaled $1,580,000.) (Use 365 daysin 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 $1,940,000.) (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 $12,980,000.) (Round your final answersto 2 decimal places.)

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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 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% Total liabilities Stockholders' equity: Common stock, $70 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 870,000 0 2,340,000 3,510,000 240,000 6,960,000 9,340,000 $ 16,300,000 $ 3,920,000 3,600,000 7,520,000 7,000,000 1,780,000 8,780,000 $ 16,300,000 Last Year $1,110,000 300,000 1,440,000 2,100,000 180,000 5,130,000 8,960,000 $ 14,090,000 $ 2,800,000 3,000,000 5,800,000 7,000,000 1,290,000 8,290,000 $ 14,090,000