Question: RATIO ANALYSIS Data for Barry Computer Co and its industry averages follow a Calculate the indicated ratios for Barry b. Construct the Dulont eqaation for
RATIO ANALYSIS Data for Barry Computer Co and its industry averages follow a Calculate the indicated ratios for Barry b. Construct the Dulont eqaation for both Barry and the inddustry. 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 nceded) Barry Computer Company Balance Sheet as of December 31, 2018 tin Thousands 77,500 Accounts payable 336000 Other curent ablities $129.000 117000 loventories 2412 Notes payable to bank Total current liabilities 5330,000 256, 500 Total current assets 5655,000 Leng term debt Comnon equty Net fixed assets Total assets Barry Computer Company: Income Statement for Year Ended December 31, 2016 (in Thousands) Sales $1,607,500 Cost of goods sold Materials Labor Heat, light, and power Indirect labor 717/000 453,000 68,000 113,000 Gross profit Seling expenses General and administrative expenses S 215,000 115,000 Earnings before interest and taxes (EBT) Interest expense s 70,000 24 500 $ 45,500 Earnings before laxes (EBT) Federal and state income tars (40%) Net incomme Ratio Current Quick Days sales outstanding Barry Industry Average Inventory turmover Total assets tumover Profit margin ROA ROE ROIC TIE Debt/Total capital 2.0 1.3x 35 days 6.7x 3.0x 1.2% 36% 9,0% 75% 3.0x 47.0% "Cakculation is based on a 365-day year DuPONT ANALYSIS Henderson's Hardware has an ROA of 11%, a 6% profit margin, and an ROE of 23%, what is its total assets turnover? What is its equity multiplier
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