Question

Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash $69,615 Accounts payable $119,340 Receivables 348,075 Other current liabilities 79,560 Inventories 198,900 Notes payable to bank 89,505 Total current assets $616,590 Total current liabilities $288,405 Long-term debt $198,900 Net fixed assets 377,910 Common equity 507,195 Total assets $994,500 Total liabilities and equity $994,500 Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) Sales $1,950,000 Cost of goods sold Materials $916,500 Labor 448,500 Heat, light, and power 97,500 Indirect labor 117,000 Depreciation 97,500 1,677,000 Gross profit $ 273,000 Selling expenses 195,000 General and administrative expenses 19,500 Earnings before interest and taxes (EBIT) $ 58,500 Interest expense 21,879 Earnings before taxes (EBT) $ 36,621 Federal and state income taxes (40%) 14,648 Net income $ 21,973 Calculate the indicated ratios for Barry. Round your answers to two decimal places.

Ratio   Barry, Industry Average

Current x 2.15x

Quick x 1.48x

Days sales outstandinga days 30.45 days

Inventory turnover x 10.28x

Total assets turnover x 2.33x

Profit margin 1.13 % 1.05%

ROA % 2.45%

ROE % 4.81%

ROIC % 7.30%

TIE x 2.60x

Debt/Total capital % 35.15%

the calculation 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

Total assets turnover

Equity multiplier

Answer 1