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

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. Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) Cash $ 32,500 Accounts payable $ 71,500 Receivables 182,000 Other current liabilities 71,500 Inventories 149,500 Notes payable to bank 45,500 Total current assets $364,000 Total current liabilities $ 188,500 Long-term debt 162,500 Net fixed assets 286,000 Common equity (29,900 shares) 299,000 Total assets $ 650,000 Total liabilities and equity $ 650,000 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (In thousands) Sales $1,000,000 Cost of goods sold Materials $450,000 Labor 220,000 Heat, light, and power 70,000 Indirect labor 90,000 830,000 Gross profit $ 170,000 Selling expenses 70,000 General and administrative expenses 10,000 Depreciation 50,000 Earnings before interest and taxes (EBIT) 40,000 Interest expense 17,875 Earnings before taxes (EBT) 22,125 Federal and state income taxes (25%) 5,531 Net Income 16,594 $ Earnings per share 0.5550 11.00 Price per share on December 31, 2021 $ $ $ a. Calculate the indicated ratios for Barry. Do not round Intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.89 x X 1.19 X Quick days 31 days Days sales outstanding 7.30 x Inventory turnover 1.73 x Total assets turnover % 1.55% Profit margin % 2.69% ROA % 6.17% ROE % 7.40% ROIC TIE 2.15 x XX % 42.13% Debt/Total capital 5.10 M/B 22.73 P/E 8.60 EV/EBITDA Calculation is based on a 365-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 % 1.55% X 1.73x Total assets turnover x X Equity multiplier arnt's strennths and weaknesses as revealed by your analysis. hould inten

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!