Sheet

$4-23$ 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 $2014.$ 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 $31,2014($in Thousands$)$

Barry Computer Company: Income Statement for Year Ended

December $31,2014($in Thousands$)$

${?}^a$ Calculation is based on a $365-$day year. Barry.