Preparation of Ratios}

Refer to the financial statements for Tobolowsky Hats Inc. in Problem 13-91B and the data below.

\section*{Required:}
1. Prepare all the financial ratios for Tobolowsky for 2018 and 2017 (using percentage terms where appropriate and rounding all answers to two decimal places).
2. CONCEPTUAL CONNECTION Indicate whether Tobolowsky's short-term liquidity is adequate.
3. CONCEPTUAL CONNECTION Discuss whether Tobolowsky uses its assets efficiently.
4. CONCEPTUAL CONNECTION Determine whether Tobolowsky is profitable.
5. CONCEPTUAL CONNECTION Discuss whether long-term creditors should regard Tobolowsky as a high-risk or a low-risk firm.
6. Perform DuPont analysis (rounding to two decimal places) for 2018 and 2017.

\section*{Case

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Amounts in thousands, except for per share data Average number of common shares outstanding Accounts receivable Inventories 2018 78,273 $ 670.469 Total assets Shareholders' equity S 604,236 601.396 469,582 592,524 2,208,782 1,908,642 1,699,432 1,640.278 1,338,321 1,075,952 2017 77,325 2016 77,021 S 545,556 Amounts in thousands, except for per share data 2018 2017 2016 Share repurchases 990,521 623,259 310,132 Cash flows from operating activities 495,000 380,000 265,000 Common dividends paid 61,836 49,488 37,740 Dividends per common share 0.79 0.64 0.49 Market price per share: High Low 92,17 79.13 56.22 56.59 37.23 27.10 Close 88.47 73.83 44.26 Year Ended December 31, Industry Averages 2018 2017 Return on equity 32.71% 27.86% Net profit margin 6% 5% Asset turnover 2.31x 2.51x Leverage 2.36x 2.22x