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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, 2019 (In Thousands)
Cash $ 110,630 Accounts payable $ 102,120
Receivables 212,750 Other current liabilities 68,080
Inventories 170,200 Notes payable to bank 102,120
Total current assets $ 493,580 Total current liabilities $ 272,320
Long-term debt 178,710
Net fixed assets 357,420 Common equity (39,997 shares) 399,970
Total assets $ 851,000 Total liabilities and equity $ 851,000

Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands)
Sales $ 1,150,000
Cost of goods sold
Materials $552,000
Labor 264,500
Heat, light, and power 57,500
Indirect labor 69,000
Depreciation 46,000 989,000
Gross profit $ 161,000
Selling expenses 80,500
General and administrative expenses 23,000
Earnings before interest and taxes (EBIT) $ 57,500
Interest expense 19,658
Earnings before taxes (EBT) $ 37,842
Federal and state income taxes (25%) 9,461
Net income $ 28,381
Earnings per share $ 0.7096
Price per share on December 31, 2019 $ 14.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 1.76
    Quick 1.14
    Days sales outstandinga days 32 days
    Inventory turnover 7.24
    Total assets turnover 1.49
    Profit margin % 2.35 %
    ROA % 3.51 %
    ROE % 7.88 %
    ROIC % 7.30 %
    TIE 2.88
    Debt/Total capital % 42.35 %
    M/B 5.40
    P/E 22.27
    EV/EBITDA 9.23
    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 % 2.35%
    Total assets turnover 1.49
    Equity multiplier

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