Problem 4-23 Ratio Analysis

Data for Barry Computer Co. and its industry averages follow.

Barry Computer Company:
Balance Sheet as of December 31, 2014 (In Thousands)
Cash	$111,825		Accounts payable	$119,280
Receivables	283,290		Other current liabilities	82,005
Inventories	186,375		Notes payable	52,185
Total current assets	$581,490		Total current liabilities	$253,470
			Long-term debt	$164,010
Net fixed assets	164,010		Common equity	328,020
Total assets	$745,500		Total liabilities and equity	$745,500

Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands)
Sales			$1,050,000
Cost of goods sold
Materials	$430,500
Labor	262,500
Heat, light, and power	73,500
Indirect labor	63,000
Depreciation	52,500		$882,000

Gross profit		$168,000
Selling expenses		94,500
General and administrative expenses		31,500
Earnings before interest and taxes (EBIT)		$42,000
Interest expense		18,041
Earnings before taxes (EBT)		23,959
Federal and state income taxes (40%)		9,584
Net income		$14,375

Calculate the indicated ratios for Barry. Round your answers to two decimal places.

Ratio	Barry	Industry Average
Current	____	2.27x
Quick	____	1.57x
Days sales outstandinga	____days	46.89days
Inventory turnover	____	6.04x
Total assets turnover	____	1.64x
Profit margin	____%	1.30%
ROA	____%	2.14%
ROE	____%	4.66%
ROIC	____%	7.70%
TIE	____	2.50x
Debt/Total capital	____%	46.00%

aCalculation is based on a 365-day year. Construct the Du Pont equation for both Barry and the industry. Round your answers to two decimal places.

	FIRM	INDUSTRY
Profit margin	___%	1.30%
Total assets turnover	____	1.64x
Equity multiplier	____	____