# Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the

## Question:

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 2016. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.)

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**Related Book For**

## Fundamentals of Financial Management

**ISBN:** 978-1305635937

Concise 9th Edition

**Authors:** Eugene F. Brigham

**Question Details**

Chapter #

**4**Section: Exercise Questions

Problem: 21

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