a.Calculate the indecated ratios for Barry

b.Construct the DuPont equation for both Barry and the industry

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 receivable, and common equity during 2011. How would that info affect the validity of your ratio analysis?

Balance Sheet:

Cash 77,500

Receivables 336,000

inventories 241,500

total current assets 655,000

net fixed assets 292,500

total assets 947,500

accounts payable 129000

notes payable 84000

other current liabilities 117000

total current liabilites 330000

long-term debt 256500

common equity 361000

total liabilities and equity 947500

Income Statement

Sales 1607500

Costs of goods sold 1392500

materials 717000

labor 453000

heat,light,power 68000

indirect labor 113000

depreciation 415000

gross profit 215000

selling expenses 115000

general and administrative expenses 30000

EBIT 70000

interest expense 245000

EBT 45500

federal and state income taxes(40%) 18200

net income 27300

Ratio and Industry average

currrent 2.0x

quick 1.3x

days sales outstanding 35 days

inventory turnover 6.7x

total assets turnover 3.0x

profit margin 1.2%

ROA 3.6%

ROW 9%

total debt/total assets 60%

(based on 365 days per year)