-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 Data for Barry Computer Co, and its industry averages follow. The firm's debt is priced at par, so the markes value of its debt equals its book value. Since dollars are in thousands. number of shares are shown in thousands too. Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Select the correct option based on Barry's strengths and weaknesses as revealed by your and ys/5. 1. 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 profitablity ratios are low compared to the industry- net income should be higher given the amount of equity, assets, and invested capital. Howevec, the company seems to be in an average liquidity position and finamcial leverage is similar to others in the industry. II. 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 decteased, 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 III. The firm's days sales outstanding ratio is more than the industry average, indicating that the firm should tighten credic 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 posibon and finandial leverage is similar to others in the industry: 1V. The firm's days sales outstanding ratio is companable to the industry average, indicating that the firm should neither tighten credit nor enforce a more stringent collection policy. The total assets turnover ratib is well below the induitry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, is other profiabirky rabios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. Howevec, the company seems to be in a below average liquidity position and financlat laverage is similar to others in the industry. V. The firm's davs sales outstanding ratio is moce than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more stringent coliection pollicy. The total assets turnover ratio is well below the industry average sa sales should be increased, assats decreased, or both. While the company's profit margin is higher than the industry averape, its other proficablity ratios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capical. Finally, ats market value ratios are also below industry averages. However, the company soems to be in an average liquidity position and financial leverape is similar to others in the induntry. d. Suppose Barry had doubled its sales as well as its invertitories, accounts receivabie, and common equity during 2019. How would that informatien affect the validity of your 1. If 2019 represents a period of normal growth for the firm, rabis based on this year wal be accurate and a comparison between them and industry averages will heve substantial meaning. Potential investors who look only of 2019 ratios will be misled, and a retum to supernormal conditions in 2020 could hurt the firm's stock price. II. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be clistorted and a comparison between them and induatry averages III. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages price. IV. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages wil have substantisl meaning. Potential investors need only look at 2019 resios to be well informad, and a return to normai conditions in 2020 could help the firm's stock price. V. If 2019 represents a perisd of normal growth for the firm, ratios based on this vear will be distorted and a comparison between them and industry averages will have ittlie meaning. Fotential investors who look only at 2019 ratios will be misled, and a continuation of normal conditions in 2020 could hurt the firm's stock price. -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 Data for Barry Computer Co, and its industry averages follow. The firm's debt is priced at par, so the markes value of its debt equals its book value. Since dollars are in thousands. number of shares are shown in thousands too. Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Select the correct option based on Barry's strengths and weaknesses as revealed by your and ys/5. 1. 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 profitablity ratios are low compared to the industry- net income should be higher given the amount of equity, assets, and invested capital. Howevec, the company seems to be in an average liquidity position and finamcial leverage is similar to others in the industry. II. 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 decteased, 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 III. The firm's days sales outstanding ratio is more than the industry average, indicating that the firm should tighten credic 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 posibon and finandial leverage is similar to others in the industry: 1V. The firm's days sales outstanding ratio is companable to the industry average, indicating that the firm should neither tighten credit nor enforce a more stringent collection policy. The total assets turnover ratib is well below the induitry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, is other profiabirky rabios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. Howevec, the company seems to be in a below average liquidity position and financlat laverage is similar to others in the industry. V. The firm's davs sales outstanding ratio is moce than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more stringent coliection pollicy. The total assets turnover ratio is well below the industry average sa sales should be increased, assats decreased, or both. While the company's profit margin is higher than the industry averape, its other proficablity ratios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capical. Finally, ats market value ratios are also below industry averages. However, the company soems to be in an average liquidity position and financial leverape is similar to others in the induntry. d. Suppose Barry had doubled its sales as well as its invertitories, accounts receivabie, and common equity during 2019. How would that informatien affect the validity of your 1. If 2019 represents a period of normal growth for the firm, rabis based on this year wal be accurate and a comparison between them and industry averages will heve substantial meaning. Potential investors who look only of 2019 ratios will be misled, and a retum to supernormal conditions in 2020 could hurt the firm's stock price. II. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be clistorted and a comparison between them and induatry averages III. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages price. IV. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages wil have substantisl meaning. Potential investors need only look at 2019 resios to be well informad, and a return to normai conditions in 2020 could help the firm's stock price. V. If 2019 represents a perisd of normal growth for the firm, ratios based on this vear will be distorted and a comparison between them and industry averages will have ittlie meaning. Fotential investors who look only at 2019 ratios will be misled, and a continuation of normal conditions in 2020 could hurt the firm's stock price