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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
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, number of shares are shown in thousands too. Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash $ 152,629 Accounts payable $ 208,125 Receivables Inventories 402,375 319,125 Other current liabilities Notes payable to bank 111,000 97,125 Total current assets $ 874,125 Total current liabilities $ 416,250 Long-term debt Net fixed assets Total assets 513,375 $1,387,500 Common equity (58,275 shares) 388,500 582,750 Total liabilities and equity $ 1,387,500 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $1,850,000 Cost of goods sold Materials Labor Heat, light, and power Indirect labor Depreciation Gross profit Selling expenses $758,500 462,500 111,000 148,000 74,000 1,554,000 $ 296,000 148,000 General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) 55,500 $ 92,500 $ 57 38,850 53,650 Federal and state income taxes (25%) Net income Earnings per share Price per share on December 31, 2019 13,413 tA 40,237 $ $ 0.6905 11.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Industry Average Ratio Barry Current 2.05 x 2.10 Quick 1.27 x 1.33 Days sales outstanding a 37 days 79.55 days Inventory turnover 6.33 x 1.33 X Total assets turnover 1.59 x 1.33 Profit margin 2.03% 2.18 % ROA 3.22% 2.9 % ROE 7.67% 6.9 % ROIC 7.40% .09 % TIE 2.31 x 2.38 Debt/Total capital 58 % M/B 44.15% 4.10 1.09 P/E 15.94 EV/EBITDA 18.76 7.99 a 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. FIRM INDUSTRY 2.03% Profit margin 2.18 % 1.59x Total assets turnover 1.33 Equity multiplier X 2.38 6.88
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