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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, the number of shares is shown in thousands too.

Barry Computer Company:
Balance Sheet as of December 31, 2021 (in thousands)
Cash $ 196,840 Accounts payable $ 182,780
Receivables 534,280 Other current liabilities 126,540
Inventories 351,500 Notes payable to bank 70,300
Total current assets $ 1,082,620 Total current liabilities $ 379,620
Long-term debt 407,740
Net fixed assets 323,380 Common equity (61,864 shares) 618,640
Total assets $ 1,406,000 Total liabilities and equity $ 1,406,000

Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands)
Sales $ 1,900,000
Cost of goods sold
Materials $893,000
Labor 475,000
Heat, light, and power 133,000
Indirect labor 114,000 1,615,000
Gross profit $ 285,000
Selling expenses 95,000
General and administrative expenses 57,000
Depreciation 57,000
Earnings before interest and taxes (EBIT) $ 76,000
Interest expense 36,697
Earnings before taxes (EBT) $ 39,303
Federal and state income taxes (25%) 9,826
Net income $ 29,477
Earnings per share $ 0.4765
Price per share on December 31, 2021 $ 10.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Ratio Barry Industry Average
Current 2.88
Quick 1.87
Days sales outstandinga days 48 days
Inventory turnover 5.90
Total assets turnover 1.52
Profit margin % 1.45 %
ROA % 2.21 %
ROE % 5.07 %
ROIC % 7.50 %
TIE 2.04
Debt/Total capital % 44.69 %
M/B 4.00
P/E 23.40
EV/EBITDA 9.74
  1. aCalculation is based on a 365-day year.
  2. 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 % 1.45%
Total assets turnover 1.52
Equity multiplier

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