Question: Data for Barry Computer Co. and its industry averages folow. a Cakulate the indicated ratioos for Barry. b. Construct the Dulont equation for both

Data for Barry Computer Co. and its industry averages folow. a Cakulate

Data for Barry Computer Co. and its industry averages folow. a Cakulate the indicated ratioos for Barry. b. Construct the Dulont equation for both Barry and the industry. c. Outline Bary's strengths and weaknesses as revealed by your analysis. d. Suppose Barry had doubled its sakes as well as its inventories, accunts receivable, and common equity during 2008. How would that information affect the validity of your ratio analysis? (Hint: Think aboxutaverages and the effects of rapid growth on ratias if averages are not used. No cakulations are needed.) Barry Computer Company: Balance Sheet as of December 31, 2008 (In Thousands) Cash $ 77500 Accounts payable $129,000 Receivables 336,000 Notes payable 84.000 Inventories 241,500 Other current liabilities 117,000 $330,000 Total current assets $655,000 Total current liabilities Long-term debt Comman equity Total liabilites and equity 256,500 Net fixed assets Total assets 292,500 361,000 $947.500 s $947,500 Barry Comput er Company: Income Statement for Year Ended December 31, 2008 (In Thousands) Sales $1607,500 Cost of goods sold Materials $ 717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation Gross profit Selling expenses General and administrative expenses 41,500 1,392,500 $ 215,000 115000 30000 $ 70000 24500 $ 45,500 18,200 $ 27300 Eamings before interest and taxes (EBIT) Interest expense Eamings before taxes (EBT) Federal and state income taxes (40%) Net income Ratio Bary Industry Average Current 20x Quick 1.3x Days sales outstanding" 35.0 days Inventory tumover 6.7x Total assets turnover 3.0x Profit margin 1.2% ROA 3.66 ROE 9.0% Total debt/total assets 60.0% Calaubtion bazed on a 365day year.

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