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: $ 123,200 Accounts payable $ 299,200 Receivables Inventories 616,000 422,400 Other current liabilities Notes payable to bank 246,400 123,200 Total current assets $1,161,600 Total current liabilities $ 668,800 Net fixed assets Total assets 598,400 $1,760,000 Long-term debt Common equity (61,600 shares) Total liabilities and equity 475,200 616,000 $1,760,000 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales Cost of goods sold Materials $1,127,500 Labor 770,000 Heat, light, and power 192,500 Indirect labor 192,500 Depreciation 110,000 Gross profit $2,750,000 Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) 2,392,500 $ 357,500 220,000 27,500 $ 110,000 33,264 76,736 19,184 $ 57,552 $ 0.9343 Price per share on December 31, 2019 $ 13.00 Net income Earnings per share 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 Barry X days X X Industry Average 1.70 x 1.05 x 39 days 6.98 x 1.82 x % 1.99% % 3.63% % 10.38% % 8.00% ROA ROE ROIC TIE Debt/Total capital % M/B P/E 3.28 50.78% 4.30 EV/EBITDA aCalculation is based on a 365-day year. 16.75 8.29 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 1.99% 1.82x Equity multiplier X c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. I. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection total assets turnover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit margin is lo the industry average, its other profitability ratios are high compared to the industry - net income should be higher given the amount of equity, assets, and in