Question: 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
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 thous 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 thous
Barry Computer Company:
Income Statement for Year Ended December in thousands
a Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Industry Average a Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Calculation is based on a day year.
b Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places.
FIRM
INDUSTRY
Profit margin
Total assets turnover
Equity multiplier
c Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis.
to others in the industry. growth on ratios if averages are not used. No calculations are needed.
ratios will be misled, and a return to normal conditions in could hurt the firm's stock price.
ratios to be well informed, and a return to normal conditions in could help the firm's stock price.
will be misled, and a continuation of normal conditions in could hurt the firm's stock price.
ratios will be misled, and a return to supernormal conditions in could hurt the firm's stock price.
ratios will be well informed, and a return to normal conditions in could hurt the firm's stock price.
Barry Computer Company:
Income Statement for Year Ended December in thousands
a Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Industry Average
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