Refer to the financial statements for Lynch Shoes Inc in
Refer to the financial statements for Lynch Shoes Inc. in Problem 12-78A and the following data.

1. Prepare all the financial ratios for Lynch for 2011 and 2010 (using percentage terms where appropriate and rounding all answers to two decimal places).
2. Explain whether Lynch’s short-term liquidity is adequate.
3. Discuss whether Lynch uses its assets efficiently.
4. Determine whether Lynch is profitable.
5. Discuss whether long-term creditors should regard Lynch as a high- risk or a low-risk firm.
6. Perform Dupont analysis (rounding to two decimal places) for 2010 and 2011.
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