Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of i

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Data For Barry Computer Co And Its Industry Averages Follow The Firm S Debt Is Priced At Par So The Market Value Of I 1 (84.03 KiB) Viewed 16 times

Data For Barry Computer Co And Its Industry Averages Follow The Firm S Debt Is Priced At Par So The Market Value Of I 2 (92.99 KiB) Viewed 16 times

Data For Barry Computer Co And Its Industry Averages Follow The Firm S Debt Is Priced At Par So The Market Value Of I 3 (158.05 KiB) Viewed 16 times

Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, number of shares are shown in thousands too. Cash Receivables Inventories Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) $ 123,200 Accounts payable 616,000 Other current liabilities 422,400 Notes payable to bank $1,161,600 Total current liabilities Total current assets Net fixed assets Total assets 598,400 $1,760,000 Long-term debt Common equity (61,600 shares) Total liabilities and equity $299,200 246,400 123,200 $ 668,800 475,200 616,000 $1,760,000
Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) $2,750,000 Sales Cost of goods sold Materials Labor Heat, light, and power Indirect labor Depreciation Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) Net income Earnings per share Price per share on December 31, 2019 $1,127,500 770,000 192,500 192,500 110,000 2,392,500 $ 357,500 220,000 27,500 $ 110,000 33,264 $76,736 19,184 $57,552 $ $ 0.9343 13.00
a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.70 x Quick 1.05 x Days sales outstandinga Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E EV/EBITDA aCalculation is based on a 365-day year. X Profit margin Total assets turnover Equity multiplier X days X X % % % % X % % 39 days b. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. FIRM INDUSTRY 1.99% X 6.98 × 1.82 x 1.99% 3.63% 10.38% 8.00% 3.28 x 50.78% 4.30 16.75 8.29 c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. I. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection p total assets turnover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit margin is lo the industry average, its other profitability ratios are high compared to the industry - net income should be higher given the amount of equity, assets, and in