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+4.23 RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow a. Calculate the indicated ratios for Barry c. Outline Barry's strengths and

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+4.23 RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow a. Calculate the indicated ratios for Barry 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 onstruct the DuPont equation for both Barry and the industry common equity during 2014. How would that information affect the ratio analysis? (Hint: Think about averages and the effects of rapid growth y o averages are not used. No calculations are needed.) Barry Computer Company Balance Sheet as of December 31, 2014 (in Thousands) Cash Receivables 77,500 Accounts payable 336,000 Other current liabillities $129000 117 000 241500 Notes payable to bank84000 Total current liabilities $330000 256,500 361,000 Total current assets$655,000 Long-term debt Common equity Net fixed assets Total assets 292,500 500 Toral b20 503 Barry Computer Company: Income Statement for Year Ended December 31, 2014 (in Thousands) $1,607,500 Cost of goods sold $717000 Labor Heat, light, and power Indirect labor 453,000 68,000 113,000 41.500 1392 500 s 215,000 115,000 30,000 s 70,000 24.500 $ 45,500 18,200 5 27.300 Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIm Interest expense Earnings before taxes (EBT Federal and state income taxes (40%) Net income Ratio Barry Industry Average Current Days sales outstanding Inventory turnover Total assets turnover Profit margin Calculation is based on a 365-day year 2.0x 1.3x 35 days 6.7x 3.0x 1.2%

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