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Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2016 (In Thousands) Cash $189,475 Accounts
Data for Barry Computer Co. and its industry averages follow.
Barry Computer Company: | ||||
Balance Sheet as of December 31, 2016 (In Thousands) | ||||
Cash | $189,475 | Accounts payable | $174,900 | |
Receivables | 524,700 | Other current liabilities | 218,625 | |
Inventories | 320,650 | Notes payable to bank | 174,900 | |
Total current assets | $1,034,825 | Total current liabilities | $568,425 | |
Long-term debt | $437,250 | |||
Net fixed assets | 422,675 | Common equity | 451,825 | |
Total assets | $1,457,500 | Total liabilities and equity | $1,457,500 |
Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) | |||
Sales | $2,750,000 | ||
Cost of goods sold | |||
Materials | $1,155,000 | ||
Labor | 770,000 | ||
Heat, light, and power | 192,500 | ||
Indirect labor | 220,000 | ||
Depreciation | 82,500 | 2,420,000 |
Gross profit | $ 330,000 | |
Selling expenses | 220,000 | |
General and administrative expenses | 27,500 | |
Earnings before interest and taxes (EBIT) | $ 82,500 | |
Interest expense | 30,608 | |
Earnings before taxes (EBT) | $ 51,892 | |
Federal and state income taxes (40%) | 20,757 | |
Net income | $ 31,135 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio | Barry | Industry Average |
Current | x | 1.83x |
Quick | x | 1.23x |
Days sales outstandinga | days | 33.16 days |
Inventory turnover | x | 9.19x |
Total assets turnover | x | 2.20x |
Profit margin | % | 1.08% |
ROA | % | 2.37% |
ROE | % | 7.33% |
ROIC | % | 7.60% |
TIE | x | 2.65x |
Debt/Total capital | % | 56.93% |
aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.
FIRM | INDUSTRY | |
Profit margin | % | 1.08% |
Total assets turnover | x | 2.20x |
Equity multiplier | x | x |
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