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RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance...

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 $126,000 Accounts payable $90,000
Receivables 270,000 Other current liabilities 72,000
Inventories 270,000 Notes payable to bank 108,000
   Total current assets $666,000    Total current liabilities $270,000
Long-term debt $270,000
Net fixed assets 234,000 Common equity 360,000
Total assets $900,000 Total liabilities and equity $900,000
Barry Computer Company:
Income Statement for Year Ended December 31, 2016 (In Thousands)
Sales $1,250,000
Cost of goods sold
   Materials $550,000
   Labor 337,500
   Heat, light, and power 50,000
   Indirect labor 100,000
   Depreciation 25,000 1,062,500
Gross profit $   187,500
Selling expenses 87,500
General and administrative expenses 37,500
   Earnings before interest and taxes (EBIT) $     62,500
Interest expense 27,000
   Earnings before taxes (EBT) $     35,500
Federal and state income taxes (40%) 14,200
Net income $     21,300
  1. Calculate the indicated ratios for Barry. Round your answers to two decimal places.
    Ratio Barry              Industry Average
    Current x 2.42x
    Quick x 1.41x
    Days sales outstandinga days 36.84 days
    Inventory turnover x 5.05x
    Total assets turnover x 1.56x
    Profit margin % 1.59%
    ROA % 2.49%
    ROE % 6.57%
    ROIC % 7.30%
    TIE x 2.22x
    Debt/Total capital % 52.72%

    aCalculation is based on a 365-day year.
  2. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
    FIRM INDUSTRY
    Profit margin % 1.59%
    Total assets turnover x 1.56x
    Equity multiplier x x

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