PLEASE ANSWER ALL OF THE QUESTION ASAP FOR A GOOD RATING Data for Barry Computer...

50.1K

Verified Solution

Question

Accounting

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 Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students