Use Matt's Hats' financial statements in Problem 12-80B and the following data to respond to the requirements below.

Required:
1. Prepare all the financial ratios for Matt's Hats for 2009 and 2008.
2. Indicate whether Matt's Hats' short-term liquidity is adequate.
3. Discuss whether Matt's Hats' uses their assets efficiently.
4. Determine whether Matt's Hats is profitable.
5. Discuss whether long-term creditors should regard Matt's Hats as a high-risk or a low-risk firm.
6. Perform Dupont analysis for 2009 and2008.

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2009 2008 2007 Average number of common shares outstanding Accounts receivable Inventories Total assets Shareholders' equity Stock repurchases Cash flows from operating 78,273 $672,139 596,468 2,190,254 1,852,695 990,521 77,325 $ 598,243 469,327 1,925,632 1,410,723 623,259 77,021 $545,556 592,524 1,699,432 1,075,952 310,132 activities Common dividends paid Dividends per common share Market price per share: 495,000 61,836 0.79 380,000 49,488 0.64 265,000 37,740 0.49 92.17 56.59 88.47 79.13 37.23 73.83 56.22 27.10 44.26 Close Year Ended December 31, Industry Averages Return on equity Profit margin Asset turnover Leverage 2009 32.71% 0.06 2.31 2.36 2008 27.86% 0.05 2.51 2.22