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Answer only the wrong ones please. Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the

Answer only the wrong ones please.

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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 dollars are in thousands, number of shares are shown in thousands too. Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash Accounts payable Receivables Other current liabilities $ 95,810 313,560 252,590 $661,960 $ 148,070 87,100 87,100 Inventories Notes payable to bank Total current assets Total current liabilities $322,270 252,590 296,140 $ 871,000 Net fixed assets 209,040 $ 871,000 Long-term debt Common equity (29,614 shares) Total liabilities and equity Total assets Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 1,300,000 Cost of goods sold Materials Labor Heat, light, and power $650,000 273,000 52,000 65,000 52,000 Indirect labor Depreciation Gross profit Selling expenses General and administrative expenses 1,092,000 $ 208,000 130,000 26,000 $ 52,000 25,259 $ 26,741 6,685 Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) Net income 20,056 Earnings per share $ 0.6772 Price per share on December 31, 2019 $ 14.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.05 2.10 x Quick 1.27 1.24 x M Days sales outstandinga 41 days 88.04 days Inventory turnover 4x 5.15 5.62 x Total assets turnover Mx 1.77 x 1.49 Profit margin % 1.54 1.44 % ROA % 2.30 2.56% ROE % 6.77 7.52 % ROIC 7.11 X% 7.10 % TIE 2.09 x 2.06 Debt/Total capital 66 % 52.82% M/B 5.40 1.40 P/E 22.93 20.67 EV/EBITDA 3 4.36 8.67 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. FIRM INDUSTRY Profit margin 1.54 % 1.44% Total assets turnover 1.77x 1.49 Equity multiplier 6.75 Xx 7.49 xx C. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. I. The firm's days sales outstanding ratio is comparable to the industry average, indicating that the firm should neither tighten credit nor enforce a more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be 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. II. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should tighten credit or enforce more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. Finally, it's market value ratios are also below industry averages. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. III. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should loosen credit or apply a less stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be 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. IV. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit margin is lower than the industry average, its other profitability ratios are high compared to the industry - net income should be 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. V. The firm's days sales outstanding ratio is more than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well above the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher given the 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

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