1. (15 points) The extended Du Pont equation may be defined as: ROE = profit margin x total assets turnover ratio x equity multiplier = (net income/sales) x (sales/total assets) x (total assets/common equity) Income statement and balance sheet for Barry Computer Company are given in Table A below. Based on information given here and Table A, a. Fill in the gaps in the following table and comment on the performance of Barry Computer relative to its peers. Ratio Barry Industry Average Current assets/current liabilities 2.Ox Days' sales outstanding 35 days Sales/inventory 6.7x Sales/fixed assets 12.1x Sales/total assets 3.0x 1.2% Net income/sales Net income/total assets 3.6% Net income/common equity 9.0% Total debt/total assets 60% Assume a 365-day year. b. Construct the extended Du Pont equation for both Barry and the industry. Income Statement Sales 1,607,500 Cost of goods sold 1,392,500 SGA expenses 145,000 EBIT 70,000 Interest expense 24,500 EBT 45,500 Federal and State Taxes 18,200 Net Income 27,000 Balance Sheet Cash 77,500 Accounts payable 129,000 Receivables 336,000 Notes payable 84,000 Inventories 241,500 Other current liabilities 117,000 Total current assets 655,000 Total current liabilities 330,000 Net fixed assets 292,500 Long-term debt 256,500 common equity 361,000 Total assets 947,500 Total liabilities and equity 957,500