Question: Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash $84,150 Accounts
Data for Barry Computer Co. and its industry averages follow. Barry Computer Company:
Balance Sheet as of December 31, 2016 (In Thousands)
| Cash | $84,150 | Accounts payable | $224,400 | |
| Receivables | 504,900 | Other current liabilities | 126,225 | |
| Inventories | 378,675 | Notes payable to bank | 112,200 | |
| Total current assets | $967,725 | Total current liabilities | $462,825 | |
| Long-term debt | $322,575 | |||
| Net fixed assets | 434,775 | Common equity | 617,100 | |
| Total assets | $1,402,500 | Total liabilities and equity | $1,402,500 |
Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands)
| Sales | $2,550,000 | ||
| Cost of goods sold | |||
| Materials | $1,071,000 | ||
| Labor | 637,500 | ||
| Heat, light, and power | 153,000 | ||
| Indirect labor | 204,000 | ||
| Depreciation | 76,500 | 2,142,000 |
| Gross profit | $ 408,000 | |
| Selling expenses | 255,000 | |
| General and administrative expenses | 25,500 | |
| Earnings before interest and taxes (EBIT) | $ 127,500 | |
| Interest expense | 29,032 | |
| Earnings before taxes (EBT) | $ 98,468 | |
| Federal and state income taxes (40%) | 39,387 | |
| Net income | $ 59,081 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
| Ratio | Barry | Industry Average |
| Current | x | 2.02x |
| Quick | x | 1.30x |
| Days sales outstandinga | days | 34.41 days |
| Inventory turnover | x | 6.93x |
| Total assets turnover | x | 2.12x |
| Profit margin | % | 2.21% |
| ROA | % | 4.68% |
| ROE | % | 10.19% |
| ROIC | % | 7.90% |
| TIE | x | 4.49x |
| Debt/Total capital | % | 40.03% |
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 | % | 2.21% |
| Total assets turnover | x | 2.12x |
| Equity multiplier | x | x |
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