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, 2018 (In Thousands) Cash $115,640 $181,720 Accounts payable Other current liabilities Receivables 512,120 132,160 Inventories 446,040 Notes payable to bank 99,120 Total current assets $1,073,800 5413,000 $379,960 Total current liabilities Long-term debt Common equity (85.904 shares) Net Foxed assets 578,200 359,040 Total assets $1,652,000 Total liabilities and equity $1,652.000 Barry Computer Company Income Statement for Year Ended December 31, 2018 (In Thousands) entement 350.000 O 7:46 PM 22.1.2020 DELL F12 F2 FO F9 F10 FS PESCE Delete 2 P A * 23 # $ 4 & 7 % 5 ( 9 Backpad ) o 6 3 8 E o T R Y F G H J L K C V B N. M . Alt Ctrl +Home er 4 - Analysis of Financial Statements - Practice Problems Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,950,000 Cost of goods sold Materials $1,386,500 Labor 767,000 147,500 118,000 59,000 2,478,000 $ 472,000 265,500 Heat, light, and power Indirect labor Depreciation Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) $ 59,000 $ 147,500 34,196 $ 113,304 45,322 $ 67,982 Net income ment/takeAssignmentMai... o DLL er 4 - Analysis of Financial Statements - Practice Problems Net income $ 67,982 $ 0.79137 Earnings per share Price per share on December 31, 2018 $ 12.00 a. Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current X 2.56x Quick 1.57x days 30.17 days Days sales outstanding Inventory turnover 7.09x Total assets turnover 2.08x Profit margin % 2.1996 ROA % 4.5796 % ROE 8.42% ROIC % 7.20% TIE 4.26x % 37.30% hent/take AssignmentMai... otal capital O BI DLL M/B % 3.20% P/E % 17.49% EV/EBITDA % 8.96% Calculation is based on a 365-day year. b. Construct the DuPont equation for both Barry and the industry. Round your answers to two de FIRM INDUSTRY Profit margin % 2.19% Total assets turnover X 2.08x Equity multiplier C. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysi Select I. The firm's days sales outstanding ratio is less than the industry average, indicating that the fir enforce a more stringent collection policy. The total assets turnover ratio is well below the ind be increased, assets decreased, or both. While the company's profit margin is lower than the profitability ratios are high compared to the industry - net income should be higher given the invested capital. However, the company seems to be in an average liquidity position and finan in the industry. II. The firm's days sales outstanding ratio is more than the industry average, indicating that the fi enforce a more stringent collection policy. The total assets turnover ratio is well above the indu