RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of...

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Finance

RATIO ANALYSIS

Data for Barry Computer Co. and its industry averagesfollow.

Barry Computer Company:
Balance Sheet as of December 31, 2016 (InThousands)
Cash$63,480Accounts payable$103,155
Receivables238,050Other current liabilities71,415
Inventories198,375Notes payable to bank39,675
   Total current assets$499,905   Total current liabilities$214,245
Long-term debt$166,635
Net fixed assets293,595Common equity412,620
Total assets$793,500Total liabilities and equity$793,500
Barry Computer Company:
Income Statement for Year Ended December 31, 2016 (InThousands)
Sales$1,150,000
Cost of goods sold
   Materials$563,500
   Labor264,500
   Heat, light, and power46,000
   Indirect labor46,000
   Depreciation23,000943,000
Gross profit$   207,000
Selling expenses126,500
General and administrative expenses11,500
   Earnings before interest and taxes(EBIT)$     69,000
Interest expense18,330
   Earnings before taxes (EBT)$     50,670
Federal and state income taxes (40%)20,268
Net income$     30,402
  1. Calculate the indicated ratios for Barry. Round your answers totwo decimal places.
    RatioBarry             Industry Average
    Currentx2.30x
    Quickx1.35x
    Days sales outstandingadays35.31 days
    Inventory turnoverx6.08x
    Total assets turnoverx1.63x
    Profit margin%2.47%
    ROA%4.03%
    ROE%7.84%
    ROIC%7.20%
    TIEx3.79x
    Debt/Total capital%34.43%

    aCalculation is based on a 365-day year.
  2. Construct the DuPont equation for both Barry and the industry.Round your answers to two decimal places.
    FIRMINDUSTRY
    Profit margin%2.47%
    Total assets turnoverx1.63x
    Equity multiplierxx

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RATIO ANALYSISData for Barry Computer Co. and its industry averagesfollow.Barry Computer Company:Balance Sheet as of December 31, 2016 (InThousands)Cash$63,480Accounts payable$103,155Receivables238,050Other current liabilities71,415Inventories198,375Notes payable to bank39,675   Total current assets$499,905   Total current liabilities$214,245Long-term debt$166,635Net fixed assets293,595Common equity412,620Total assets$793,500Total liabilities and equity$793,500Barry Computer Company:Income Statement for Year Ended December 31, 2016 (InThousands)Sales$1,150,000Cost of goods sold   Materials$563,500   Labor264,500   Heat, light, and power46,000   Indirect labor46,000   Depreciation23,000943,000Gross profit$   207,000Selling expenses126,500General and administrative expenses11,500   Earnings before interest and taxes(EBIT)$     69,000Interest expense18,330   Earnings before taxes (EBT)$     50,670Federal and state income taxes (40%)20,268Net income$     30,402Calculate the indicated ratios for Barry. Round your answers totwo decimal places.RatioBarry             Industry AverageCurrentx2.30xQuickx1.35xDays sales outstandingadays35.31 daysInventory turnoverx6.08xTotal assets turnoverx1.63xProfit margin%2.47%ROA%4.03%ROE%7.84%ROIC%7.20%TIEx3.79xDebt/Total capital%34.43%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.FIRMINDUSTRYProfit margin%2.47%Total assets turnoverx1.63xEquity multiplierxx

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