Question: please help me please!! Data for Bany Computer Co, and its industry averages follow. The firm's debt is priced at par, so the market value






Data for Bany Computer Co, and its industry averages follow. The firm's debt is priced at par, so the market value of its detit equals its book value. Since dollers are in thousands, the number of shares is shown in thousands tem Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) Cash $108,300 Accounts payable $ 129,960 Other current liabilties 108,300 Receivables twentories 422,370 324,900 Notes peysble to bank 129,960 1855,570 $368,220 Total current labotes Long-term debt 259,920 Not fixed assets 227,430 Common equity (45,466 shares) 454,860 Total assets 11,053,000 Total liabilities and equity $1,003,000 Barry Computer Company Income Statemest for Year Ended December 31, 2021 (in thousands) Sales $1,900,000 Cost of goods sold Materials $855,000 LMOF 418,000 Heat, light, and power 91,000 Indirect labor 171,000 1,539.000 Gro profe $361.000 Seting expenses 228,000 General and adminstrative experie 19,000 Depreciation 38,000 Kamings before rest and tases (EBIT) $ 76,000 arest expense 28,591 Earnings before tases (EDT) $ 47,409 federal and state income taxes (25%) 11,852 Not income 35,557 Earnings per share 0.7817 Price per share on December 31, 2021 12.00 Total curent acti S a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.33x Quick 1.47X Days sales outstanding 38 days Inventory turnover 6.13x Total assets turnover 1.98x Profit margin 1.75% ROA 3.46% ROE 8.32% ROIC 7.10% TIE x 2.71x Debt/Total capital 45.55% M/B 3.20 P/E 18.09 EV/EBITDA 9.31 "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. INDUSTRY FIRM % Profit margin 1.75% 1.98x Total assets turnover Equity multiplier c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. T The fimo X x days X x % % % % Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, ossets decreased, or both. While the company's profit margin is higher than the industry average, its other profitability ratio are low compared to the industry net income should be higher given the amount of equity, assets, and invested capital. Finally, it's market value ratios are also below industry averages. However the company seems to be in an average liquidity position and financial leverage is similar to others in the industry 1. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should lossen credit or apply a less stringent collection policy. The total assets turnover ratio is well below the industry average se seles should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low campared to the industry net income should be higher gives the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. II. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets turnover ratio is wel below the industry average so sales should be increased, assets decreased, or both, While the company's profit margin is lower than the industry average, its other profitability ratios are high compared to the industry-net income should be Nigher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry IV. The firm's days sales outstanding ratio is more than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets tumover ratie is well above the industry average so sales should be increased, assets creased, or both, while the company's profit margin is higher than the industry average, as other profitability ratios are low compared to the industry net income should be higher given the amount of equity, assets, and invested capital. However, the company seems to be in an above average liquidity position and financial leverage is samilar to others in the industry The firm's days sales outstanding ratis is comparable to the industry average, indicating that the firm should neither tighten credit nar enforce a more stringent collection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets increased, or both, while the company's profit margin is higher than the industry average, Rts other profitability ratos are ow compared to the industry net income should be higher given the amount of equity, assets, and invested capital. However, the company seems to be in a below average liquidity position and financial leverage is similar to others in the industry had doubled its sales as well as its inventories, accounts receivable, and commen equity during 2021. How would that information affect the validity of your ratio analysis? (Hint: Think about averages of rapid growth on ratios if everages are not used. No calculations are needed.) represents a period of nommal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors ook only at 2021 retos will be misted, and a return to supernormal conditions in 2022 could hurt the firm's stock price TV 23 represents a period of supernommal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potential ars who look only at 2021 ratios will be well informed, and a return to normal conditions in 2022 could hurt the firm's stock price. FLEBR> d. Suppose Bany had doubled its sales as well as its inventories, accounts receivable, and common equity during 2021. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of repid growth on ratios if averages are not used. No calculations are needed) 1. If 2021 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2021 ratios will be misled, and a retum to supernormal conditions in 2022 could hurt the firm's stock price 11. 2021 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have substantial meaning Potential investors who look only at 2021 ratios will be well informed, and a return to normal conditions in 2022 could hurt the firm's stock price, III. I 2021 represents a period of supemormal growth for the firm, ratios besed on this year will be distorted and a comparison between them and industry averages will have little meaning. Potential investors who look only at 2021 ratios will be misled, and a retum to normal conditions in 2022 could hurt the firm's stock price. tv of 2021 represents a period of superormal growth for the firm, satios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning Potential Investors need only look at 2021 ratios to be well informed, and a return to normal conditions in 2022 could help the firm's stock price. V. If 2021 represents a period of normal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have little meaning Potential vestors whe look only at 2021 ratios will be misted, and a continuation of normal conditions in 2022 could hurt the firm's stock price -Select- Grade it Now Save & Continue
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