Question: RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash
RATIO ANALYSIS
Data for Barry Computer Co. and its industry averages follow.
| Barry Computer Company: | ||||
| Balance Sheet as of December 31, 2016 (In Thousands) | ||||
| Cash | $149,625 | Accounts payable | $363,375 | |
| Receivables | 555,750 | Other current liabilities | 192,375 | |
| Inventories | 598,500 | Notes payable to bank | 106,875 | |
| Total current assets | $1,303,875 | Total current liabilities | $662,625 | |
| Long-term debt | $641,250 | |||
| Net fixed assets | 833,625 | Common equity | 833,625 | |
| Total assets | $2,137,500 | Total liabilities and equity | $2,137,500 | |
| Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) | |||
| Sales | $2,850,000 | ||
| Cost of goods sold | |||
| Materials | $1,140,000 | ||
| Labor | 855,000 | ||
| Heat, light, and power | 85,500 | ||
| Indirect labor | 313,500 | ||
| Depreciation | 85,500 | 2,479,500 | |
| Gross profit | $ 370,500 | |
| Selling expenses | 142,500 | |
| General and administrative expenses | 85,500 | |
| Earnings before interest and taxes (EBIT) | $ 142,500 | |
| Interest expense | 44,888 | |
| Earnings before taxes (EBT) | $ 97,612 | |
| Federal and state income taxes (40%) | 39,045 | |
| Net income | $ 58,567 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
| Ratio | Barry | Industry Average |
| Current | x | 1.92x |
| Quick | x | 1.11x |
| Days sales outstandinga | days | 33.26 days |
| Inventory turnover | x | 5.00x |
| Total assets turnover | x | 1.50x |
| Profit margin | % | 1.92% |
| ROA | % | 2.88% |
| ROE | % | 7.47% |
| ROIC | % | 7.80% |
| TIE | x | 3.22x |
| Debt/Total capital | % | 46.20% |
aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
| FIRM | INDUSTRY | |
| Profit margin | % | 1.92% |
| Total assets turnover | x | 1.50x |
| Equity multiplier | x | x |
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