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 bock value. Since dellars are in thousands, the number of shares is shown in thousands too. Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) "Calculation is based on a 365 -day year. c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days sales outstanding ratio is comparable to the industry average, indicating that the firm should neither tighten credit nor enforce a more stringent colilection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, oc both. While the compariy's profit margin is higher than the industry average, 1ts other profitabilty ratios are low compared to the industry - net income should be higher given the amoont of equity, assets, and invested capital. However, the company scems to be in a below average liquidity position and financial leverage is similar to others in the industry. II. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more. stringent collection policy. The 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 higher than the industry average, its other profitabisty ratios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. Finally, it's market value ratios are also below industry averages. However, the company seems to be in an average liquldity position and financlal leverage is similar to others in the industry. III. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should ioosen credit or apply a less stringent coliection paicy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, its other profitabulity ratios are low compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. IV. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm sheuld tighten credit or enforce a more stringenticoliection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit margin is lower than the industry average, its other proftability ratios are high compared to the industry - net income should be higher given the amount of equity, assets, and invested captal. However, the cempany seems to be in an average liquidity position and financial leverage is smilar to others in the industry. v. The firm's days sales outstanding ratio is mare than the indystry averege, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well above the indu try average so sales should be increased, assets increased, or both. While the company's profit. margin is higher than the industry average, its other profitability ratios are low compared to the industry = net income should be higher given the amount of equity, assets, and invested capital, However, the company seems to be in an above average liguidity posabon and financial leverage is samilar to others in the industry. d. Suppose farry had doubled its saler as nell as its imventories, accounts receivable, and common equity during 2021 . Wow would that indormation affect the validity of your ratio analys? (Mint. Think about averages ans the effects of ragid grenth on rabios if averages are not used. No calculations are needed.) T. If 202t represents a penod of supernomal greath for the fims, raties based on this year wir be disterted and a comparison between them and industry averages nil have subistantul meaning. Potential iewvitom who look enly at 2021 rabios will be well kformed, and a retum to normat conditions in 2022 could hort the 11. If 2021 represents a peniod of supemoemai growth for the firm, ratios baved on this vear will be distorted and a comparison between them and industry averages mill have ittie meaning. Potentisl invertors who look only at 2021 rabot will be misled, and a return to normal condelons in 2022 could hart the firmis stock IIt. If 2021 represents a period of aupernocmal growth for the fem, ratios based on this vear mil be acourate and a comparison between them and industry averages firm's ateck price. IV. If 2021 represents a penod of narmal egroeth for the firm, ratios based on tha year will be distorted and a compsrison between them and industry averages wit prict. W. If 2021 rebresents a period of narmal growth far the firm, rities based on this vear wil be accurate and a comparison between them and industry averages wit haveck price