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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 equals
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, 2018 (In Thousands) | ||||
Cash | $111,600 | Accounts payable | $139,500 | |
Receivables | 241,800 | Other current liabilities | 83,700 | |
Inventories | 260,400 | Notes payable to bank | 46,500 | |
Total current assets | $613,800 | Total current liabilities | $269,700 | |
Long-term debt | $260,400 | |||
Net fixed assets | 316,200 | Common equity (39,990 shares) | 399,900 | |
Total assets | $930,000 | Total liabilities and equity | $930,000 |
Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) | |||
Sales | $1,550,000 | ||
Cost of goods sold | |||
Materials | $728,500 | ||
Labor | 372,000 | ||
Heat, light, and power | 46,500 | ||
Indirect labor | 155,000 | ||
Depreciation | 31,000 | 1,333,000 |
Gross profit | $ | 217,000 |
Selling expenses | 139,500 | |
General and administrative expenses | $ | 31,000 |
Earnings before interest and taxes (EBIT) | $ | 46,500 |
Interest expense | 28,644 | |
Earnings before taxes (EBT) | $ | 17,856 |
Federal and state income taxes (40%) | 7,142 | |
Net income | $ | 10,714 |
Earnings per share | $ | 0.26792 |
Price per share on December 31, 2018 | $ | 11.00 |
- Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio Barry Industry Average Current x 2.23x Quick x 1.25x Days sales outstandinga days 27.11 days Inventory turnover x 6.13x Total assets turnover x 1.94x Profit margin % 0.66% ROA % 1.28% ROE % 2.98% ROIC % 8.00% TIE x 1.57x Debt/Total capital % 42.12% M/B % 3.10% P/E % 43.37% EV/EBITDA % 10.70% - Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
FIRM INDUSTRY Profit margin % 0.66% Total assets turnover x 1.94x Equity multiplier x x
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