Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. a Calculation is based on a

image text in transcribedimage text in transcribedimage text in transcribed a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. a Calculation is based on a 365 -day year. b. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. amount of equity, assets, and invested capital. However, the company seems to be in an above average liquidity position and financial leverage is similar to others in the industry. higher given the amount of equity, assets, and invested capital. However, the company seems to be in a below average liquidity position and financial leverage is similar to others in the industry. others in the industry. higher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. rapid growth on ratios if averages are not used. No calculations are needed.) 2021 ratios to be well informed, and a return to normal conditions in 2022 could help the firm's stock price. will be misled, and a continuation of normal conditions in 2022 could hurt the firm's stock price. ratios will be misled, and a return to supernormal conditions in 2022 could hurt the firm's stock price. 2021 ratios will be well informed, and a return to normal conditions in 2022 could hurt the firm's stock price. Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $2,950,000 Cost of goods sold Materials Labor Heat, light, and power Indirect labor Gross profit Selling expenses General and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25\%) Net income Earnings per share Price per share on December 31, 2021 $1,298,000 796,500 118,000 295,000 $442,5002,507,500 147,500 88,500 $118,00088,500 $86,65331,347 21,663 $$0.814164,990 $14.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Current Quick Days sales outstandinga Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E EV/EBITDA Industry Average 1.87 1.00 days x 29 days 5.38 1.77 2.10% 3.71% 8.66% 7.20% 3.73 44.74% 3.40 20.16 9.51 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. a Calculation is based on a 365 -day year. b. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. amount of equity, assets, and invested capital. However, the company seems to be in an above average liquidity position and financial leverage is similar to others in the industry. higher given the amount of equity, assets, and invested capital. However, the company seems to be in a below average liquidity position and financial leverage is similar to others in the industry. others in the industry. higher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. rapid growth on ratios if averages are not used. No calculations are needed.) 2021 ratios to be well informed, and a return to normal conditions in 2022 could help the firm's stock price. will be misled, and a continuation of normal conditions in 2022 could hurt the firm's stock price. ratios will be misled, and a return to supernormal conditions in 2022 could hurt the firm's stock price. 2021 ratios will be well informed, and a return to normal conditions in 2022 could hurt the firm's stock price. Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $2,950,000 Cost of goods sold Materials Labor Heat, light, and power Indirect labor Gross profit Selling expenses General and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25\%) Net income Earnings per share Price per share on December 31, 2021 $1,298,000 796,500 118,000 295,000 $442,5002,507,500 147,500 88,500 $118,00088,500 $86,65331,347 21,663 $$0.814164,990 $14.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Current Quick Days sales outstandinga Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E EV/EBITDA Industry Average 1.87 1.00 days x 29 days 5.38 1.77 2.10% 3.71% 8.66% 7.20% 3.73 44.74% 3.40 20.16 9.51

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Literacy For Managers

Authors: Richard A. Lambert

1st Edition

1613630182, 978-1613630181

More Books

Students also viewed these Finance questions

Question

=+4. What might explain any differences that you identify?

Answered: 1 week ago

Question

=+2. Is there a strong collective bargaining culture in evidence?

Answered: 1 week ago