Question: 4 - 2 3 RATIO ANALYSIS Data for Barry Computer Co . and its industry averages follow. The firm's debt is priced at par, so

4-23 RATIO ANALYSIS 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, the number of shares is shown in thousands too.
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 2021. 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.)
Barry Computer Company:
Balance Sheet as of December 31,2021(in thousands)
Barry Computer Company: Income Statement for Year Ended
December 31,2021(in thousands)
Sales
 4-23 RATIO ANALYSIS Data for Barry Computer Co. and its industry

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