Refer to the financial statements for Burch Industries in Problem 12-89A and the following data.

_________________________ Year ended December 31,
Industry Averages ____________ 2019 __________ 2018
Return on equity ...................... 25.98% ............. 23.04%
Profit margin ........................... 0.05 ...................... 0.04
Asset turnover ......................... 2.24 ...................... 2.56
Leverage ................................. 2.32 ....................... 2.25
Required:
1. Prepare all the financial ratios for Burch for 2019 and 2018 (using percentage terms where appropriate and rounding all answers to two decimal places).
2. Explain whether Burch's short-term liquidity is adequate.
3. Discuss whether Burch uses its assets efficiently.
4. Determine whether Burch is profitable.
5. Discuss whether long-term creditors should regard Burch as a high-risk or a low-risk firm.
6. Perform a Dupont analysis (rounding to two decimal places) for 2018 and 2019.

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2019 2017 2018 Average number of common shares outstanding Accounts receivable, net Inventories Total assets Stockholders' equity Stock repurchases Cash flows from operating activities 77,063 $ 667,547 592,986 2,187,463 1,646,026 76,067 $ 521,588 586,594 1,708,430 1,032,789 288,320 137,000 76,602 $ 596,018 471,202 1,872,861 1,324,149 581,134 150,000 930,111 190,000 2019 2018 2017 Common dividends paid Dividends per common share Market price per share: High $ 57,797 0.75 $ 45,195 0.59 $ 39,555 0.52 90.25 55.00 86.33 77.45 35.12 71.65 54.50 26.00 43.22 Low Close