Question: 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
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.


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) $129,000 117,000 84,000 $330,000 256,500 361,000 $947,500 Cash Receivables Inventories S 77,500 Accounts payable 336,000 Other current liabilities 241500 Notes payable to bank Total current assets $655,000 Total current liabilities Net fixed assets Total assets 292,500 947,500 Long-term debt Common equity Total liabilities and equity
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