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Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands)

image text in transcribedimage text in transcribed Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $1,250,000 Cost of goods sold Materials $587,500 Labor 262,500 Heat, light, and power 62,500 Indirect labor Gross profit Selling expenses $275,00062,500 General and administrative expenses 150,000 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 12,500 $50,00062,500 $32,58017,420 \begin{tabular}{rr} $24,4358,145 \\ \hline$0.6631 \\ $14.00 \end{tabular} a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current Quick Days sales outstanding a Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE 2.3x 2.35 1.52 41 days 7.12 1.77 1.83% 3.24% 7.37% 7.90% 2.78 Chapter 4 Homework Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E EV/EBITDA 1.83% 3.24% 7.37% 7.90% 2.78 43.96% 3.40 23.46 8.44 b. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin FIRM INDUSTRY Total assets turnover 1.83% Equity multiplier 1.77 8 c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. leverage is similar to others in the industry. financial leverage is similar to others in the industry. However, the company seenns to be in an average liquidity position and financial leverage is similar to others in the industry. financial leverage is similar to others in the industry. leverage is similar to others in the industry. -Select- Z needed.) 2022 could help the firm's stock price. hurt the firm's stock price. could hurt the firm's stock price. in 2022 could hurt the firm's stock price. hurt the firm's stock price. -Select- - Hide Feedlback Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $1,250,000 Cost of goods sold Materials $587,500 Labor 262,500 Heat, light, and power 62,500 Indirect labor Gross profit Selling expenses $275,00062,500 General and administrative expenses 150,000 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 12,500 $50,00062,500 $32,58017,420 \begin{tabular}{rr} $24,4358,145 \\ \hline$0.6631 \\ $14.00 \end{tabular} a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current Quick Days sales outstanding a Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE 2.3x 2.35 1.52 41 days 7.12 1.77 1.83% 3.24% 7.37% 7.90% 2.78 Chapter 4 Homework Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E EV/EBITDA 1.83% 3.24% 7.37% 7.90% 2.78 43.96% 3.40 23.46 8.44 b. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin FIRM INDUSTRY Total assets turnover 1.83% Equity multiplier 1.77 8 c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. leverage is similar to others in the industry. financial leverage is similar to others in the industry. However, the company seenns to be in an average liquidity position and financial leverage is similar to others in the industry. financial leverage is similar to others in the industry. leverage is similar to others in the industry. -Select- Z needed.) 2022 could help the firm's stock price. hurt the firm's stock price. could hurt the firm's stock price. in 2022 could hurt the firm's stock price. hurt the firm's stock price. -Select- - Hide Feedlback

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