90.2K

Verified Solution

Link Copied!

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

See Answer