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

  1. Calculate the indicated ratios for Barry. Round your answers to two decimal places.
    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%
    aCalculation is based on a 365-day year.
  2. 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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