Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cash Receivables Inventories Total current assets 728,000 546,000 $1,383,200 Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) $ 109,200 $
Cash Receivables Inventories Total current assets 728,000 546,000 $1,383,200 Barry Computer Company: Balance Sheet as of December 31, 2021 (in thousands) $ 109,200 $ 273,000 218,400 145,600 Accounts payable Other current liabilities Notes payable to bank Total current liabilities $ 637,000 Long-term debt 455,000 Net fixed assets Total assets 436,800 $1,820,000 Common equity (72,800 shares) 728,000 Total liabilities and equity $1,820,000 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales Cost of goods sold Materials Labor Heat, light, and power Indirect labor Gross profit Selling expenses $2,800,000 $1,176,000 812,000 140,000 112,000 2,240,000 $ 560,000 280,000 General and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) 56,000 112,000 $ 112,000 45,500 $ 66,500 Federal and state income taxes (25%) 16,625 Net income 49,875 Earnings per share 0.6851 Price per share on December 31, 2021 $ 13.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Current Quick Days sales outstanding Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE Debt/Total capital M/B P/E Barry x x Industry Average 2.12 x 1.34 x x days 44 days x 5.60 x 1.83 x % 1.66% % 3.04% % 7.29% % 7.00% 2.56 x x % 46.71 % 4.30 21.22 EV/EBITDA aCalculation is based on a 365-day year. 8.82 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 Total assets turnover FIRM % x INDUSTRY 1.66% 1.83x Equity multiplier x x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started