Data for Barry Computer Co. and its industry averages follow.

a. Calculate the indicated ratios for Barry.

b. Construct the DuPont equation for both Barry and the industry.

c. Outline Barry's strengths and weaknesses as revealed by your analysis.

d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2008. How would that information affect the validity of your ratio analysis?

Barry Computer Company: Balance Sheet as of December 31, 2008 (In Thousands) $ 77,500 Cash Accounts payable Notes payable $129,000 Receivables 336,000 84,000 117,000 $330,000 256,500 Inventories 241,500 $655,000 Other current liabilities Total current assets Total current liabilities Long-term debt Common equity Total liabilities and equity 292,500 361,000 $947,500 Net fixed assets Total assets $947,500 Barry Computer Company: Income Statement for Year Ended December 31, 2008 (In Thousands) Sales $1,607,500 Cost of goods sold $ 717,000 Materials Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 $ 215,000 Gross profit Selling expenses General and administrative expenses 115,000 30,000 $ 70,000 Earnings before interest and taxes (EBIT) 24,500 $ 45,500 Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) 18,200 $ 27,300 Net income