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.