Question: Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash $145,530 Accounts
Data for Barry Computer Co. and its industry averages follow.
| Barry Computer Company: | ||||
| Balance Sheet as of December 31, 2016 (In Thousands) | ||||
| Cash | $145,530 | Accounts payable | $124,740 | |
| Receivables | 270,270 | Other current liabilities | 135,135 | |
| Inventories | 270,270 | Notes payable to bank | 51,975 | |
| Total current assets | $686,070 | Total current liabilities | $311,850 | |
| Long-term debt | $239,085 | |||
| Net fixed assets | 353,430 | Common equity | 488,565 | |
| Total assets | $1,039,500 | Total liabilities and equity | $1,039,500 | |
| Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) | |||
| Sales | $1,650,000 | ||
| Cost of goods sold | |||
| Materials | $693,000 | ||
| Labor | 330,000 | ||
| Heat, light, and power | 49,500 | ||
| Indirect labor | 181,500 | ||
| Depreciation | 49,500 | 1,303,500 | |
| Gross profit | $ 346,500 | |
| Selling expenses | 198,000 | |
| General and administrative expenses | 49,500 | |
| Earnings before interest and taxes (EBIT) | $ 99,000 | |
| Interest expense | 21,518 | |
| Earnings before taxes (EBT) | $ 77,482 | |
| Federal and state income taxes (40%) | 30,993 | |
| Net income | $ 46,489 |
- Calculate the indicated ratios for Barry. Round your answers to two decimal places.
aCalculation is based on a 365-day year.Ratio Barry Industry Average Current x 2.25x Quick x 1.38x Days sales outstandinga days 28.47 days Inventory turnover x 6.54x Total assets turnover x 1.75x Profit margin % 2.68% ROA % 4.71% ROE % 10.57% ROIC % 7.70% TIE x 4.51x Debt/Total capital % 36.23% - Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
FIRM INDUSTRY Profit margin % 2.68% Total assets turnover x 1.75x Equity multiplier x x
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