Problem 12-92A Preparation of Ratios The financial statements for Burch Industries follow: Burch Industries Consolidated Income Statements (in thousands, except per share data) Year ended December 31, 2019 2018 2017 Revenues $3,930,984 $3,405,211 $3,003,610 $2,386,993 $1,850,530 $2,089,089 761,498 922,261 664,061 25,739 30,665 27,316 Costs and expenses: Cost of goods sold Selling and administrative Interest Other expenses (income) Total costs and expenses Income before income taxes Income taxes Net Income 1,475 2,141 (43) $3,336,468 $2,541,864 $2,883,393 $521,818 $594,516 $461,746 174,700 229,500 192,600 $365,016 $329,218 $287,046 Burch Industries Consolidated Balance Sheets (in thousands) toms Check My Workmore Check My Worse remaining Burch Industries Consolidated Balance Sheets (in thousands) December 31, 2019 2018 ASSETS Current assets: $291,284 $260,050 667,547 596,018 592,986 471,202 26,378 27,511 Cash and equivalents Accounts receivable, less allowance for doubtful accounts of $19,447 and $20,046 Inventories Deferred income taxes Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Goodwill 42,452 32,977 $1,387,758 $1,620,647 $497,795 $571,032 (193,037) (151,758) $377,995 $346,037 157,894 110,363 28,703 Other assets 30,927 Total assets $2,187,463 $1,872,861 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Check My Work 9 more Check My Work uses remaining All work saved. ER eBook $3,652 105,696 134,729 134,089 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Noncurrent deferred income taxes Other noncurrent liabilities Commitments and contingencies Redeemable preferred stock Total abilities Stockholders equity $52,985 108,165 135,701 138,563 17,150 $452,564 15,033 29,965 43,575 42,422 $420,588 77,022 27,074 23,728 0 0 300 300 $541,437 $548,712 Common stock at stated value: $159 $161 2.716 Class A convertible-26,691 and 26,919 shares outstanding Class B-49,161 and 48,591 shares outstanding Capital in excess of stated value 2,720 108,451 (7.790) 1,542,456 51.646,026 Treasury stock (common at Cost) 93,799 (6,860) 1,234,333 $1,324,149 Retained earnings Total stocicholders' equity Check My Workmore Check My Work uses remaining Email Instructor Save ar All work saved 6,860) 1,234,333 eBook reasury stock common at cost) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 790) 1,542,486 $1,646,026 $2,187,463 $1,324,149 $1,872,861 Use the following data to respond to the requirements below. 2019 2018 2017 77,063 76,602 $596,018 $667,547 76,067 $521,588 586,594 1,708,430 471,202 1,872,861 Average number of common shares outstanding Accounts receivable, net Inventories Total assets Stockholders' equity Stock repurchases Cash flows from operating activities Common dividends paid 592,986 2,187,463 1,646,026 930,111 1,324,149 1,032,789 581,134 288,320 190,000 150,000 137,000 57.797 45,195 39,555 0.52 Dividends per common share 0.75 0.59 Market price per share: High 90.25 77.45 54. LOW 55.00 35.12 26.00 Close 36.33 71.65 43.22 Year ended December 31 Industry Averages 2019 2011 Check My Workmore Check My Worces remaining All work saved eBook Market price per share: High 90.25 77.45 54.50 Low 55.00 35.12 26.00 Close 86.33 71.65 43.22 Year ended December 31, 2019 2018 25.98% 23.04% Industry Averages Return on equity profit margin Asset turnover Leverage 0.05 0.04 2.24 2.56 2.32 2.25