Using problem $4-23$ on pages $143144$ of Fundamentals of Financial Management $($Brigham & Houston, $2022),$ populate the Module $2$ Assignment Part $1$ file with the necessary information. This will assist you as you develop your report. All formulas are included in the Module $2$ Assignment Part $1$ file.

Calculate the following ratios for the Barry Computer Company using the Excel spreadsheet provided.

Ratio Calculation

Current Current Assets$/$Current Liabilities

Quick Current Assets $$ Inventories$/$Current Liabilities

Days Sales Outstanding Receivables$/($Annual Sales$/365)$

Inventory Turnover Sales$/$Inventories

Total Assets Turnover Sales$/$Total Assets

Profit Margin Net Income$/$Sales

ROA Net Income$/$Total Assets

ROE Net Income$/$Common Equity

ROIC EBIT$(1$ T$)/$Total Invested Capital

TIE EBIT$/$Interest Charges

Debt$/$Total Capital Total Debt$/($Total Debt $+$ Equity$)$

M$/$B Market Price$/$Book Value

P$/$E Price per Share$/$Earnings per Share

EV$/$EBITDA $($Market Value of Equity $+$ Market Value of Total Debt $+$

Market Value of Other Financial Claims $$ Cash and Equivalents$)/$EBITDA

Here is the excel worksheet

Ratio Barry Computers Industry Averages

Current Current Assets$/$Current Liabilities $1\mathrm{.}982\mathrm{.}0$X

Quick Current Assets $-$ Inventories$/$Current Liabilities $1\mathrm{.}251\mathrm{.}3$X

Days Sales Outstanding Receivables$/($Annual Sales$/365)76\mathrm{.}335$ days

Inventory Turnover Sales$/$Inventories $6\mathrm{.}666\mathrm{.}7$X

Total Assets Turnover Sales$/$Total Assets $1\mathrm{.}703\mathrm{.}0$X

Profit Margin Net Income$/$Sales $2\mathrm{.}3\%1\mathrm{.}2\%$

ROA Net Income$/$Total Assets $3\mathrm{.}9\%3\mathrm{.}6\%$

ROE Net Income$/$Common Equity $10\mathrm{.}2\%9\mathrm{.}0\%$

ROIC EBIT$(1-$T$)$Total Invested Capital $7\mathrm{.}48\%7\mathrm{.}5\%$

TIE EBIT$/$Interest Charges $3\mathrm{.}333\mathrm{.}0$X

Debt$/$Total Capital Total Debt$/($Total Debt $+$ Equity$)48\mathrm{.}5\%47\mathrm{.}0\%$

M$/$B Market Price$/$Book Value #DIV$/0!4$X

P$/$E Price per Share$/$Earnings per Share $11\mathrm{.}7917\mathrm{.}86$X

EV$/$EBITDA $($Market Value of Equity $+$ Market Value of Total Debt $+$ Market Value of Other Financial Claims $-$ Cash and Equivalents$)/$EBITDA $6\mathrm{.}649\mathrm{.}00$X

Balance Sheet Enter figures below

Cash $$77,500$

Receivables $$336,000$

Inventories $$241,500$

Total Current Assets $$655,000$

Net Fixed Assets $$292,500$

Total Assets $$947,500$

Accounts Payable $$129,000$

Other Current Liabilities $$117,000$

Notes Payable to Bank $$84,000$

Total Current Liabilities $$330,000$

Long$-$Term Debt $$256,500$ Shares Outstanding

Common Equity $(36,100$ shares$)$ $$361,00036,100$

Total Liabilities and Equity $$947,500$

Income Statement

Sales $$1,607,500$

Cost of Goods Sold $0$

Materials $$717,000$

Labor $$453,000$

Heat, light, and power $$68,000$

Indirect Labor $$113,000$

Depreciation $$41,500$

Gross Profit $$256,500$

Selling Expenses $$115,000$

Gen. Admin Expenses $$30,000$

EBIT $$70,000$

Interest Expense $$21,000$

EBT $$49,000$ Tax Burden

Fed and State Income Taxes $(25\%)$ $$12,25025\%$

Net Income $$36,750$

Earnings per Share $$1\mathrm{.}01800$

Price per Share $$12\mathrm{.}00$

Book Value $($Common Equity$/$Shares$)$ $$0\mathrm{.}00$

Analyze computations to determine which ratios are above and below their industry averages, and for each, provide a brief explanation as to why that might be the case.

Evaluate the financial health of the organization, including in what areas the organization could improve.