Burch Industries Consolidated Income Statements (in thousands, except per share data) Year ended December 31, 2019 2017 2018 $3,405,211 Revenues $3,930,984 $3,003,610 Costs and expenses: Cost of goods sold Selling and administrative $2,386,993 $2,089,089 $1,850,530 922,261 761,498 30,665 Interest 25,739 664,061 27,316 (43) Other expenses (income) 1,475 2,141 Total costs and expenses $3,336,468 $2,883,393 $2,541,864 Income before income taxes $594,516 $521,818 $461,746 Income taxes 229,500 192,600 174,700 Net income $365,016 $329,218 $287,046 Burch Industries Consolidated Balance Sheets (in thousands) December 31, 2019 2018 ASSETS Current assets: Cash and equivalents $291,284 $260,050 Accounts receivable, less allowance for doubtful accounts of 667,547 596,018 $19,447 and $20,046 Inventories 592,986 471,202 Deferred income taxes 26,378 27,511 Prepaid expenses 42,452 32,977 Total current assets $1,620,647 $1,387,758 Property, plant, and equipment $571,032 $497,795 Less accumulated depreciation (193,037) (151,758) Net property, plant, and equipment $377,995 $346,037 Goodwill 157,894 110,363 28,703 Other assets 30,927 Total assets $2,187,463 $1,872,861 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $52,985 $3,652 Notes payable 108,165 105,696 Accounts payable 135,701 134,729 Accrued liabilities 138,563 134,089 Income taxes payable 17,150 42,422 Total current liabilities $452,564 $420,588 Long-term debt 15,033 77,022 Noncurrent deferred income taxes 27,074 29,965 43,575 Other noncurrent liabilities 23,728 Commitments and contingencies 0 0 Redeemable preferred stock 300 300 Total liabilities $541,437 $548,712 Stockholders' equity: Common stock at stated value: Class A convertible-26,691 and 26,919 shares outstanding $159 $161 Class B-49,161 and 48,591 shares outstanding 2,720 2,716 Capital in excess of stated value 108,451 93,799 Treasury stock (common at cost) (7,790) (6,860) Retained earnings 1,542,486 1,234,333 Total stockholders' equity $1,646,026 $1,324,149 Total liabilities and stockholders' equity $2,187,463 $1,872,861 Use the following data to respond to the requirements below. 2019 2018 2017 Average number of common shares outstanding 77,063 76,602 76,067 Accounts receivable, net $667,547 $521,588 $596,018 471,202 Inventories 592,986 Total assets 1,872,861 586,594 1,708,430 1,032,789 Stockholders' equity 2,187,463 1,646,026 930,111 190,000 1,324,149 581,134 150,000 Stock repurchases Cash flows from operating activities 288,320 137,000 Common dividends paid 57,797 45,195 39,555 Dividends per common share 0.75 0.59 0.52 Market price per share: High 90.25 77.45 54.50 Low 55.00 35.12 26.00 43.22 Close 86.33 71.65 Year ended December 31, Industry Averages 2019 2018 Return on equity 25.98% 23.04% profit margin 0.04 Asset turnover 0.05 2.24 2.32 2.56 2.25 Leverage Required: 1. Prepare all the financial ratios for Burch for 2019 and 2018. In your computations, round the tax rate to three decimal places (ie: .4693 would be .469). Round your final answers to two decimal places. 2019 2018 Short-Term Liquidity Ratios: Current ratio 3.3 Quick ratio Cash ratio Operating cash flow ratio 0.420 Debt Management Ratios: Times Interest earned ratio (Accrual Basis) Long-term debt to equity ratio Debt to equity ratio Debt Management Ratios: Times interest earned ratio (Accrual Basis) Long-term debt to equity ratio Debt to equity ratio Long-term debt to total assets ratio Debt to total assets ratio Asset Efficiency Ratios: Accounts receivables turnover ratio Inventory turnover ratio 3.950 Asset turnover ratio Profitability Ratios: Gross profit percentage Operating margin percentage Net profit margin percentage Return on assets ratio Return on equity ratio Stockholder Ratios: Earnings per share (EPS)