a. Calculate the indicated ratios for Barry.

b. Outline Barrys strengths and weaknesses as revealed by your analysis.

c. What actions could management do to be on par with the industry average?

d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2016. How would that information affect the validity of your ratio analysis?

Ratio	Barry	Industry Average
Current		2.0x
Quick (Acid)		1.3x
Profit Margin		1.20%
Operating Profit Margin		4.00%
ROA		3.60%
ROE		9.00%
ROIC		7.50%
Debt/Total Capital		47.00%

Balance Sheets as of December 31
	2016
Assets
Cash and Equivalents	$ 77,500
Accounts Receivables	$ 336,000
Inventories	$ 241,500
Total Current Assets	$ 655,000
Net Plant and Equipment	$ 292,500
Total Assets	$ 947,500
Liabilities and Equity
Accounts Payable	$ 129,000
Accruals	$ 117,000
Notes Payable	$ 84,000
Total Current Liabilities	$ 330,000
Long-term bonds	$ 256,500
Total Liabilities	$ 586,500
Common Equity	$ 361,000
Total Liabilities and Equity	$ 947,500

Income Statement for Year Ending December 31, 2016
Sales	$ 1,607,500
Operating Costs	$ 1,496,000
Depreciation & Amortization	$ 41,500
EBIT	$ 70,000
Interest	$ 24,500
EBT	$ 45,500
Taxes (40%)	$ 18,200
Net Income	$ 27,300