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

Required:
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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2011 2010 2009 76,602 667,547 $ 596,018 $ 521,588 592,986 471,202 586,594 Average number of common shares outstanding Accounts receivable Inventories Total assets Stockholders' equity Stock repurchases Cash flows from operating activities Common dividends paid Dividends per common share Market price per share 77,063 76,067 2,187,463 1,872,861 1,708,430 1,646,026 1,324,149 1,032,789 288,320 137,000 39,555 0.52 581,134 150,000 45,195 51 ,797 5 0.59 90.25 $ 77.45 54.50 35.12 71.65 55.00 86.33 26.00 43.22 Year Ended December 31 Industry Averages 2011 25.98% 0.05 2.24 2.32 Return on equity Profit margin Asset turnover 23.04% 0.04 2.25