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, 2019 (In Thousands) Cash $ 186,550 Accounts payable Receivables 545,300 Other current liabilities Inventories 401,800 Notes payable to bank Total current assets $ 1,133,650 Total current liabilities Long-term debt Net fixed assets 301,350 Common equity (58,835 shares) Total assets $1,435,000 Total liabilities and equity $ 200,900 200,900 100,450 $ 502,250 344,400 588,350 $ 1,435,000 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 2,050,000 Cost of goods sold Materials $861,000 Labor 533,000 Heat, light, and power 102,500 Indirect labor 164,000 Depreciation 41,000 1,701,500 Gross profit $ 348,500 Selling expenses 205,000 General and administrative expenses 61,500 Earnings before interest and taxes (EBIT) $ 82,000 Interest expense 37,884 Earnings before taxes (EBT) $ 44,116 Federal and state income taxes (25%) 11,029 Net income $ 33,087 Earnings per share $ 0.5624 Price per share on December 31, 2019 $ 14.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.27 x Quick 1.43 Days sales outstanding days 45 days Inventory turnover 5.57 x Total assets turnover 1.70 x Profit margin 1.51 % ROA 2.56% ROE 5.98 % ROIC 7.20 % 2.13 x Debt/Total capital 44.56% M/B 3.40 P/E 27.59 EV/EBITDA 11.46 TIE 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 1.51% Total assets turnover 1.70x Equity multiplier 1. XX
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