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, the number of shares is shown in thousands too.

Barry Computer Company:

Balance Sheet as of December $31,2021($in thousands$)$

Cash $ $77,625$ Accounts payable $ $138,000$

Receivables $284,625$ Other current liabilities $77,625$

Inventories $207,000$ Notes payable to bank $60,375$

Total current assets $ $569,250$ Total current liabilities $ $276,000$

Long$-$term debt $181,125$

Net fixed assets $293,250$ Common equity $(40,537\mathrm{.}5$ shares$)405,375$

Total assets $ $862,500$ Total liabilities and equity $ $862,500$

Barry Computer Company:

Income Statement for Year Ended December $31,2021($in thousands$)$

Sales $ $1,250,000$

Cost of goods sold

Materials $$525,000$

Labor $250,000$

Heat, light, and power $87,500$

Indirect labor $112,500975,000$

Gross profit $ $275,000$

Selling expenses $150,000$

General and administrative expenses $12,500$

Depreciation $50,000$

Earnings before interest and taxes $($EBIT$)$ $ $62,500$

Interest expense $16,301$

Earnings before taxes $($EBT$)$ $ $46,199$

Federal and state income taxes $(25\%)11,550$

Net income $ $34,649$

Earnings per share $ $0\mathrm{.}8547$

Price per share on December $31,2021$ $ $13\mathrm{.}00$

Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.

Ratio Barry Industry Average

Current

$\backslash$times $1\mathrm{.}99\backslash$times

Quick

$\backslash$times $1\mathrm{.}36\backslash$times

Days sales outstandinga

days $39$ days

Inventory turnover

$\backslash$times $6\mathrm{.}33\backslash$times

Total assets turnover

$\backslash$times $1\mathrm{.}72\backslash$times

Profit margin

$\%2\mathrm{.}59\%$

ROA

$\%4\mathrm{.}46\%$

ROE

$\%9\mathrm{.}09\%$

ROIC

$\%7\mathrm{.}40\%$

TIE

$\backslash$times $3\mathrm{.}78\backslash$times

Debt$/$Total capital

$\%36\mathrm{.}73\%$

M$/$B

$3\mathrm{.}30$

P$/$E

$17\mathrm{.}83$

EV$/$EBITDA

$8\mathrm{.}99$

aCalculation is based on a $365-$day year.

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

$\%2\mathrm{.}59\%$

Total assets turnover

$\backslash$times $1\mathrm{.}72\backslash$times

Equity multiplier

$\backslash$times

$\backslash$times Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during $2021.$ How would that information affect the validity of your ratio analysis? $($Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.$)$