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, the number of shares is shown in thousands too.

Barry Computer Company:

Balance Sheet as of December 31, 2021 (in thousands)

Cash

$

111,360

Accounts payable

$

167,040

Receivables

501,120

Other current liabilities

139,200

Inventories

334,080

Notes payable to bank

153,120

Total current assets

$

946,560

Total current liabilities

$

459,360

Long-term debt

320,160

Net fixed assets

445,440

Common equity (61,248 shares)

612,480

Total assets

$

1,392,000

Total liabilities and equity

$

1,392,000

Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands)

Sales

$

2,400,000

Cost of goods sold

Materials

$1,152,000

Labor

480,000

Heat, light, and power

168,000

Indirect labor

192,000

1,992,000

Gross profit

$

408,000

Selling expenses

240,000

General and administrative expenses

24,000

Depreciation

48,000

Earnings before interest and taxes (EBIT)

$

96,000

Interest expense

35,218

Earnings before taxes (EBT)

$

60,782

Federal and state income taxes (25%)

15,196

Net income

$

45,586

Earnings per share

$

0.7443

Price per share on December 31, 2021

$

10.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.

Ratio

Barry

Industry Average

M/B

4.00

P/E

15.59

EV/EBITDA

9.57

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