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 $163,800 Accounts payable $138,600

Receivables 315,000 Other current liabilities 163,800

Inventories 264,600 Notes payable 138,600

Total current assets $743,400 Total current liabilities $441,000

Long-term debt $302,400

Net fixed assets 516,600 Common equity 516,600

Total assets $1,260,000 Total liabilities and equity $1,260,000

Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands)

Sales $2,250,000

Cost of goods sold Materials $967,500

Labor 517,500

Heat, light, and power 157,500

Indirect labor 225,000

Depreciation 45,000 $1,912,500

Gross profit $337,500

Selling expenses 247,500

General and administrative expenses 45,000

Earnings before interest and taxes (EBIT) $45,000

Interest expense 30,240

Earnings before taxes (EBT) 14,760

Federal and state income taxes (40%) 5,904

Net income $8,856

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

Ratio Barry Industry Average

Current x 1.70x

Quick x 1.10x

Days sales outstandinga days 24.33days

Inventory turnover x 9.11x

Total assets turnover x 1.97x

Profit margin % 0.37%

ROA % 0.74%

ROE % 1.90%

ROIC % 7.30%

TIE x 3.10x

Debt/Total capital % 49.50%

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 % 0.37% Total assets turnover x 1.97x Equity multiplier