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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