Question: Please be correct or no positive vote Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so
Please be correct or no positive vote


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 214,200 Accounts payable $ 249,900 Receivables 571,200 Other current liabilities 232,050 Inventories 374,850 Notes payable to bank 142,800 Total current 1,160,250 Total current liabilities $ 624,750 assets Long-term debt 357,000 Net fixed assets 624,750 Common equity 803,250 (80,325 shares) Total assets 1,785,000 Total liabilities and $ 1,785,000 equity Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 2,550,000 Cost of goods sold Materials $1,096,500 Labor 612,000 Heat, light, and power 102,000 Indirect labor 255,000 Depreciation 102,000 2,167,500 Gross profit $382,500 Selling expenses 255,000 General and administrative expenses 25,500 Earnings before interest and taxes $ 102,000 (EBIT) Interest expense 42,840 Earnings before taxes (EBT) $ 59,160 Federal and state income taxes 14,790 (25%) Net income $ 44,370 Earnings per share $ 0.5524 Price per share on December 31, $ 10.00 2019 X a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current X 1.91 x Quick 1.31 x Days sales days 38 days outstandinga Inventory turnover 7.14 x Total assets 1.70 x turnover Profit margin % 1.63% ROA % 2.76% x x ROE % 5.88% ROIC % 7.90 % TIE 2.33 x Debt/Total capital % 37.06% M/B 5.00 P/E 20.85 EV/EBITDA 7.89 a 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 % 1.63% Total assets 1.70x turnover Equity multiplier
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