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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

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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 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) $122,850 Accounts payable $232,050 Receivables 368,550 Other current liabilities 177,450 313,050 Notes payable to bank 68,250 Total current assets 5805,350 Total current liabilities $477,750 Long term debt $327,600 559,650 Net fixed assets 559,650 Common equity (55,965 Shares) $1,365,000 Total liabilities and equity $1,365,000 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,100,000 Cost of goods sold Materials $1,008,000 420,000 DO Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,100,000 Cost of goods sold Materials Labor $1,008,000 420,000 105,000 210,000 Heat, light, and power Indirect labor Depreciation 63,000 1,806,000 Gross profit 294,000 Selling expenses General and administrative expenses 168,000 42,000 84,000 Earnings before interest and taxes (EBIT) Interest expense 22,932 Earnings before taxes (EBT) Federal and state income taxes (40%) 61,068 24,427 Net income 36,641 Earnings per share 0.65471 Price per share on December 31, 2018 10.00 1.73x Total assets turnover 1.63% Profit margin 2.83% ROA ROE 7.27% ROIC 7.50% TIE 3.69x 42.33% Debt/Total capital / 4.00% P/E 17.93% EV/EBITDA 8.57% Calculation is based on a 365-day year. b. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin 1.63% Total assets turnover 1.73x Equity multiplier C. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. -Select- 1. The firm's days sales outstanding ratio is comparable to the industry average, indicating that the firm should nel more stringent collection policy The total assets turnover ratin is well below the industry average so sales should

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