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Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash $ 241,995 Accounts payable $ 204,765 Receivables 539,835 Other current liabilities 204,765

Barry Computer Company:
Balance Sheet as of December 31, 2019 (In Thousands)
Cash $ 241,995 Accounts payable $ 204,765
Receivables 539,835 Other current liabilities 204,765
Inventories 409,530 Notes payable to bank 148,920
Total current assets $ 1,191,360 Total current liabilities $ 558,450
Long-term debt 446,760
Net fixed assets 670,140 Common equity (85,629 shares) 856,290
Total assets $ 1,861,500 Total liabilities and equity $ 1,861,500

Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands)
Sales $ 2,550,000
Cost of goods sold
Materials $1,020,000
Labor 637,500
Heat, light, and power 102,000
Indirect labor 255,000
Depreciation 76,500 2,091,000
Gross profit $ 459,000
Selling expenses 306,000
General and administrative expenses 25,500
Earnings before interest and taxes (EBIT) $ 127,500
Interest expense 35,741
Earnings before taxes (EBT) $ 91,759
Federal and state income taxes (25%) 22,940
Net income $ 68,819
Earnings per share $ 0.8037
Price per share on December 31, 2019 $ 11.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 2.08
    Quick 1.37
    Days sales outstandinga days 36 days
    Inventory turnover 6.80
    Total assets turnover 1.54
    Profit margin % 2.52 %
    ROA % 3.89 %
    ROE % 8.93 %
    ROIC % 7.70 %
    TIE 3.50
    Debt/Total capital % 39.93 %
    M/B 5.10
    P/E 16.31
    EV/EBITDA 9.26
    aCalculation is based on a 365-day year.
  2. 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 % 2.52%
    Total assets turnover 1.54
    Equity multiplier

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