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 equals

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, number of shares are shown in thousands too.

Barry Computer Company:
Balance Sheet as of December 31, 2018 (In Thousands)
Cash $208,800 Accounts payable $295,800
Receivables 435,000 Other current liabilities 139,200
Inventories 417,600 Notes payable to bank 87,000
Total current assets $1,061,400 Total current liabilities $522,000
Long-term debt $435,000
Net fixed assets 678,600 Common equity (78,300 shares) 783,000
Total assets $1,740,000 Total liabilities and equity $1,740,000

Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands)
Sales $3,000,000
Cost of goods sold
Materials $1,500,000
Labor 840,000
Heat, light, and power 120,000
Indirect labor 150,000
Depreciation 60,000 2,670,000
Gross profit $ 330,000
Selling expenses 210,000
General and administrative expenses $ 60,000
Earnings before interest and taxes (EBIT) $ 60,000
Interest expense 34,800
Earnings before taxes (EBT) $ 25,200
Federal and state income taxes (40%) 10,080
Net income $ 15,120
Earnings per share $ 0.19310
Price per share on December 31, 2018 $ 10.00

  1. Calculate the indicated ratios for Barry. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 2.03x 2.04x
    Quick 1.23x 1.20x
    Days sales outstandinga 52.92 days 25.20 days
    Inventory turnover 7.18x 7.70x
    Total assets turnover 1.72x 2.01x
    Profit margin .50% 0.48%
    ROA .87% 0.97%
    ROE 1.93% 2.05%
    ROIC % 7.30%
    TIE 1.72x 1.67x
    Debt/Total capital % 39.40%
    M/B % 4.00%
    P/E 51.79% 54.01%
    EV/EBITDA % 11.35%

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