PLEASE ANSWER ALL OF THE QUESTION ASAP FOR A GOOD RATING Data for Barry Computer...
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PLEASE ANSWER ALL OF THE QUESTION ASAP FOR A GOOD RATING
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.
Barry Computer Company:
Balance Sheet as of December 31, 2018 (In Thousands)
Cash
$90,280
Accounts payable
$124,135
Receivables
440,115
Other current liabilities
101,565
Inventories
259,555
Notes payable to bank
90,280
Total current assets
$789,950
Total current liabilities
$315,980
Long-term debt
$315,980
Net fixed assets
338,550
Common equity (49,654 shares)
496,540
Total assets
$1,128,500
Total liabilities and equity
$1,128,500
Barry Computer Company:
Income Statement for Year Ended December 31, 2018 (In Thousands)
Sales
$1,850,000
Cost of goods sold
Materials
$925,000
Labor
388,500
Heat, light, and power
74,000
Indirect labor
129,500
Depreciation
74,000
1,591,000
Gross profit
$
259,000
Selling expenses
166,500
General and administrative expenses
$
37,000
Earnings before interest and taxes (EBIT)
$
55,500
Interest expense
31,598
Earnings before taxes (EBT)
$
23,902
Federal and state income taxes (40%)
9,561
Net income
$
14,341
Earnings per share
$
0.28882
Price per share on December 31, 2018
$
11.00
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio
Barry
Industry Average
Current
_____x
2.51x
Quick
______ x
1.73x
Days sales outstandinga
______ days
41.35 days
Inventory turnover
______ x
7.34x
Total assets turnover
______ x
1.91x
Profit margin
_______ %
0.74%
ROA
________ %
1.41%
ROE
_______%
3.21%
ROIC
________%
7.70%
TIE
______x
1.73x
Debt/Total capital
______ %
46.50%
M/B
_______ %
5.10%
P/E
_______ %
41.00%
EV/EBITDA
________ %
8.84%
aCalculation is based on a 365-day year.
Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
FIRM
INDUSTRY
Profit margin
_____ %
0.74%
Total assets turnover
______x
1.91x
Equity multiplier
_______ x
_______x
Answer & Explanation
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