Question: Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash $189,475 Accounts
Data for Barry Computer Co. and its industry averages follow.
| Barry Computer Company: | ||||
| Balance Sheet as of December 31, 2016 (In Thousands) | ||||
| Cash | $189,475 | Accounts payable | $174,900 | |
| Receivables | 524,700 | Other current liabilities | 218,625 | |
| Inventories | 320,650 | Notes payable to bank | 174,900 | |
| Total current assets | $1,034,825 | Total current liabilities | $568,425 | |
| Long-term debt | $437,250 | |||
| Net fixed assets | 422,675 | Common equity | 451,825 | |
| Total assets | $1,457,500 | Total liabilities and equity | $1,457,500 | |
| Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) | |||
| Sales | $2,750,000 | ||
| Cost of goods sold | |||
| Materials | $1,155,000 | ||
| Labor | 770,000 | ||
| Heat, light, and power | 192,500 | ||
| Indirect labor | 220,000 | ||
| Depreciation | 82,500 | 2,420,000 | |
| Gross profit | $ 330,000 | |
| Selling expenses | 220,000 | |
| General and administrative expenses | 27,500 | |
| Earnings before interest and taxes (EBIT) | $ 82,500 | |
| Interest expense | 30,608 | |
| Earnings before taxes (EBT) | $ 51,892 | |
| Federal and state income taxes (40%) | 20,757 | |
| Net income | $ 31,135 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
| Ratio | Barry | Industry Average |
| Current | x | 1.83x |
| Quick | x | 1.23x |
| Days sales outstandinga | days | 33.16 days |
| Inventory turnover | x | 9.19x |
| Total assets turnover | x | 2.20x |
| Profit margin | % | 1.08% |
| ROA | % | 2.37% |
| ROE | % | 7.33% |
| ROIC | % | 7.60% |
| TIE | x | 2.65x |
| Debt/Total capital | % | 56.93% |
aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
| FIRM | INDUSTRY | |
| Profit margin | % | 1.08% |
| Total assets turnover | x | 2.20x |
| Equity multiplier | x | x |
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