A. Calculate the indicated ratios for Barry

B. construct the DuPont equation for both Barry and the industry.

C. Outline Barry's strengths and weakenesses as revealed by your analysis.

D. Suppose Barey had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019. How would that information affect the validity of your ratio analysis?

Sales Cost of goods sold RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dol- lars are in thousands, number of shares are shown in thousands too. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. Outline Barry's strengths and weaknesses as revealed by your analysis. d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) Barry Computer Company: Balance Sheet as of December 31, 2019 (in Thousands) Cash $ 77,500 Accounts payable Receivables 336,000 Other current liabilities Inventories 241,500 Notes payable to bank Total current assets $ 655,000 Total current liabilities Long-term debt Net fixed assets 292,500 Common equity (36,100 shares) Total assets $ 947,500 Total liabilities and equity $129,000 117,000 84,000 $330,000 256,500 361,000 $947,500 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (in Thousands) Sales $1,607,500 Cost of goods sold Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 1,392,500 41,500 Depreciation $ 215,000 Gross profit Selling expenses 115,000 30,000 General and administrative expenses $ 70,000 Earnings before interest and taxes (EBIT) 21,000 Interest expense $ 49,000 Earnings before taxes (EBT) 12,250 Federal and state income taxes (2596) $ 36,750 Net income $ 1.018 Earnings per share $ 12.00 Price per share on December 31, 2019 Industry Average Ratio 2.0X Current 1.3% Quick 35 days Days sales outstanding 6.7% Inventory turnover 3.0x Total assets turnover Profit margin 1.696 $ Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) 215,000 115,000 30,000 70,000 21,000 49,000 12,250 36,750 $ Net income Earnings per share Price per share on December 31, 2019 $ $ 1.018 12.00 Barry Ratio Current Quick Days sales outstanding Inventory turnover Total assets turnover Profit margin ROA ROE Industry Average 2.0x 1.3x 35 days 6.7% 3.0x 1.6% 4.8% ROIC 12.1% 9.4% 3.5x 47.0% 4.22% TIE Debt/Total capital M/B P/E EV/EBITDA "Calculation is based on a 365-day year. 13.27 9.14