and the following data to respond to the requirements below.

2009 2008 2007 Average number of common shares outstanding 78,273 77,325 77,021 Accounts receivable $ 672,139 $ 598,243 $ 545,556 Inventories 596,468 469,327 592,524 Total assets 2,190,254 1,925,632 1,699,432 Shareholders’ equity 1,852,695 1,410,723 1,075,952 Stock 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 92.17 79.13 56.22 Low 56.59 37.23 27.10 Close 88.47 73.83 44.26 Year Ended December 31, Industry Averages 2009 2008 Return on equity 32.71% 27.86%

Profit margin 0.06 0.05 Asset turnover 2.31 2.51 Leverage 2.36 2.22 Required:
. Prepare all the financial ratios for Matt’s Hats for 2009 and 2008.
. Indicate whether Matt’s Hats’ short-term liquidity is adequate.
. Discuss whether Matt’s Hats’ uses their assets efficiently.
. Determine whether Matt’s Hats is profitable.
. Discuss whether long-term creditors should regard Matt’s Hats as a high-risk or a low-risk firm.
. Perform Dupont analysis for 2009 and 2008.