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	$51,840		Accounts payable	$77,760
Receivables	181,440		Other current liabilities	58,320
Inventories	155,520		Notes payable	51,840
Total current assets	$388,800		Total current liabilities	$187,920
			Long-term debt	$142,560
Net fixed assets	259,200		Common equity	317,520
Total assets	$648,000		Total liabilities and equity	$648,000

Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands)
Sales			$1,200,000
Cost of goods sold
Materials	$564,000
Labor	252,000
Heat, light, and power	60,000
Indirect labor	120,000
Depreciation	48,000		$1,044,000

Gross profit		$156,000
Selling expenses		108,000
General and administrative expenses		24,000
Earnings before interest and taxes (EBIT)		$24,000
Interest expense		11,405
Earnings before taxes (EBT)		12,595
Federal and state income taxes (40%)		5,038
Net income		$7,557

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

Ratio	Barry	Industry Average
Current	x	1.97x
Quick	x	1.18x
Days sales outstandinga	days	25.79days
Inventory turnover	x	8.42x
Total assets turnover	x	2.20x
Profit margin	%	0.59%
ROA	%	1.30%
ROE	%	2.53%
ROIC	%	7.10%
TIE	x	3.50x
Debt/Total capital	%	45.00%

aCalculation is based on a 365-day year.