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 sha Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash Receivables Inventories 146,160 Total current assets $403.680 Net fixed assets Total assets $34,800 222,720 Accounts payable $ 69,600 Other current liabilities 97,440 Notes payable to bank 41,760 Total current liabilities $208,800 Long-term debt 160,080 292.320 Common equity (32.712 shares) 327,120 $696,000 Total liabilities and equity $696,000 Barry Computer Company Income Statement for Year Ended December 31, 2019 (In Thousands) Sales Cost of goods sold Materials Labor Heat, light, and power Indirect labor Depreciation Gross profe Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (CBT) Federal and state income taxes (25%) Net income Earnings per share Price per share on December 31, 2019 $1,200.000 $576,000 348,000 36.000 60,000 36.000 1,056,000 5-144,000 72.000 24,000 48.000 12.806 35.194 8,799 26.393 $ 0.8069 $ 11.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places Ratio Current Barry Industry Average 1.86 N Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Industry Average Ratio Barry 1.86x Current Quick 1.20 x EX Days sales outstanding days 32 days 8.45x Inventory turnover Total assets turnover 2.01 x Profit margin 2.09% % 4.21% ROA % 8.97% ROE % ROIC % 7.80% 3.85 x TIE 27.56% Debt/Total capital 4.10 M/B 16.11 P/E 8.56 43 EV/EBITDA "Calculation 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. Profe margin Total assets tumover Equity multiplier FIRM INDUSTRY 2.09% 2.01 c. Select the correct cation based on Barry's strengths and weaknesses as revealed by your analys T. The firm's days sales outstanding ratio is less than the industry average indicating that the firm should tighten credit on anforce a more stringent collection policy. The total assets turnover all! the industry average its other profitability retics are high compared to the industry-net income should be higher given the amount of equity assets, and invested capital However the compy zeema 11. The firm's days sales outstanding ratio is industry average indicating that the firm should tighten credit or enforce a more stringent colection policy. The total asset turnover ratio is w than the industry average, its other profitability ratios are low compared The firm's days sales outstanding ratio is comper s higher than tha industry average its the industry-net income should be given the amount of equity assets, and invested capital. However the company zew average indicating that the firm should i tighten credit nor enforce a more stringent collection policy. The total assets mover ratios are low compared industry-net income should be higher given the amount of equity assets and inverted capital Hoever the comm dustry average, indicating that the firm should sighten credit or enforce a mere stringent collection policy. The total assetztumew are low compared to the indus incoms should be higher given the amount of equity assers and invested capital, Fly 2 The firm's days sales outstanding ratio is more than twice t margin is higher than the industry average, its other financial leverage is similar to others industry The firm's days sales outstanding ratio ls mors than twice as long as the industry average indicating that the firm should loosen credit or apply a less stringent collection policy. The total reets tuver higher than the industry average its other profitability ratiss are low compared to the industry net income should f higher gives the amount of equity, assets, and invested capital. Howeven the camps Select V Suppose Barry had double its salsas sel 11 1019 pressinta a period of norm its inventories, accounts receivable, and cammon equity during 2019. How would that informa for the firm rates based on t The donad and a compension between affect the validity your rata analysis? (Hint: Think about m and industry averages will have meaning, Potential intors the la Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Industry Average Ratio Current Barry 1.86x x 1.20 x Quick x Days sales outstanding days 32 days Inventory turnover 8.45x Total assets tumover 2.01 x Profit margin % 2.09% ROA 96 4.21% 8.57% ROE % ROIC % 7.80% 3.85 x TIE Debt/Total capital 27.36% 4.10 M/B 16.11 P/E 8.56 43 EV/EBITDA "Calculation is based on a 365-day year 3. Construct the DuPont equation for both Barry and the industry. Do not round intermediata calculations Round your answers to two decimal places. Profit margin Total assets tumover Equity multiplier FIRM INDUSTRY 2.09% 2.00 Select the correct oation based on Bany's strengths and weaknesses as revealed by your analis The firm's days sales outstanding ratio is less than the industry average indicating that the firm should sighten credit or enforce a more stringent collection policy. The total assets turnover rats wall the industry averages other profitability ratios are high compared to the industry net income should be higher given the amount of equity assets, and invested capital However the comply seeme 11. The firm's days sales tatanding ratio is more than the industry average. Indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assete tunaver Mow! shan the industry average, its other profitability ratios 1. The firm's days sales outstanding ratio is comparable to the industry average indicating that the firm should neither tighten credit nor anforce a more stringent ceilection policy. The total sazeta mover compared to the industry net income should be higher given the amount of equity assets, and invested capital, Nowaves the company sem s higher than the industry average its other profitability ratios are low compared to the industry-net The firm's days salas outstanding ratio is more than twice t hould be higher given the amount of equity assets and invested capital. However the com margin is higher then the industry average, ita other profitability ratios are loli compared to the industry net income should be should tighten credit or enforce a mere stringent collection policy. The total assets turgy Financial leverage is similar to others the industry ther given the amount of equity assets, and invested capital. Final a long as the industry average, indicating The firm's days sales outstanding ratio is mors then twice as long as the industry average indicating that the firm should loosen credit or apply less stringent collection policy The total assets tuliquer a higher than the industry average its other profitability ratios are low campered to the industry net income should be higher gives the amount of aquity, assets, and invested capital. However the empa Select V d. Suppose Barry hed doubled its sales as well as its inveraries accounts receivable, and common equity during 2019. How 1 2015 presents a period of normal graith for the firm ratios based on this year will be distal end a comp to search 0 that information affect the validity of your raro analysia? (Mint Think about eve ween them and industry averages will have line meaning. Rosental investors who i 0 e S days x Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Industry Average Ratio: Current Quick Days sales outstanding Inventory turnover Barry x 1.86 x 1.20 x 32 days 8.45x 2.01 x Total assets tumover Profit margin % 2.09% 4.21% ROA 8.97% ROE 7.80% ROIC 3.85x TIE 27.56% 4.10 16.11 8.56 Debt/Total capital 3/0 P/F EV/EBITDA "Calculation 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. Drufe margin Total assets tumover FIRM INDUSTRY 2.09% 2.06H Equity multiplier 13 Select the correct option based on Benny's strengths and weakchesses as revealed by your ave The firm's days sales outstanding ratio is less than the industry average indicating that the fem should tighten crede or force a more vingent collection polity. The total sat the industry averages that draftabl high compered to the industry i than the industry average, indicating s are low compared to the indy 11. The fem's days sales outstanding ratio is stry average te other proficat than the The firm's days sales outstanding ris s higher than the industry average its other s 2 The firm's days sales outstanding ratio is man margin is higher then the industry average its other profe Financial others in the industry than ice as long V. The firm's days sales outstanding ratio over reall income should be higher given the amount of equity assets and invested capital However the company sees force a more stringent collection policy. The total assets timover o iz should be higher given the amount of equity asses, and invested capital Houses the compan frm should nether fence a more stringent collection policy The total assets fury given the amount of equity assets and invested capital Hoever the co credit enforce a more stringent collection anicy The s pared to the indur compared the industry average indicating thei is higher than the industry average, its other profitabley ratios are low compar A Suppose Sarry had doubles its sales as well as 2019 representa penad of normal to search s fem should gher given the amount of equity assets, and invested capital Finally fem should loosen credi apply less stringent collection policy. The total assets ver to the industry net income should be higher given the amount of equity assets and invested capital. However the com receivable and common eduty during 2015 How y rats based on this year will be distorted and t that information effect yen them and industry averag validity of your ratio analysia (Mine Think about s 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 sha Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash Receivables Inventories 146,160 Total current assets $403.680 Net fixed assets Total assets $34,800 222,720 Accounts payable $ 69,600 Other current liabilities 97,440 Notes payable to bank 41,760 Total current liabilities $208,800 Long-term debt 160,080 292.320 Common equity (32.712 shares) 327,120 $696,000 Total liabilities and equity $696,000 Barry Computer Company Income Statement for Year Ended December 31, 2019 (In Thousands) Sales Cost of goods sold Materials Labor Heat, light, and power Indirect labor Depreciation Gross profe Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (CBT) Federal and state income taxes (25%) Net income Earnings per share Price per share on December 31, 2019 $1,200.000 $576,000 348,000 36.000 60,000 36.000 1,056,000 5-144,000 72.000 24,000 48.000 12.806 35.194 8,799 26.393 $ 0.8069 $ 11.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places Ratio Current Barry Industry Average 1.86 N