Question: Please break this down step to step and help with clear answer thank you Fixed assets Total assets Sales Total liabilities and equity Cost of
Fixed assets Total assets Sales Total liabilities and equity Cost of goods sold 00 4-23 RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry c. Outline Barry's strengths and weaknesses as revealed by your analysis. d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2016. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) Barry Computer Company: Balance Sheet as of December 31, 2016 (in Thousands) Cash Receivables Inventories $77,500Accounts payable 336,000 241,500 $655,000 $129,000 117,000 84,000 $330,000 256,500 361,000 $947 500 Total liabilities and equity $947 5000 Other current liabilities Notes payable to bank Total current assets Total current liabilities Long-term debt Net fixed assets Total assets 292,500 Common equity Barry Computer Company: Income Statement for Year Ended December 31, 2016 (in Thousands) Sales Cost of goods sold $1,607,500 Materials Labor Heat, light, and power Indirect labor Depreciatiorn $717,000 453,000 68,000 113,000 Gross profit Selling expenses General and administrative expenses 1,392,500 S 215,000 115,000 Earnings before interest and taxes (EBIT) $ 70,000 24,500 $ 45,500 18,200 27.300 Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income
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