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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, 2018 (In Thousands) Cash $75,375 Accounts payable Receivables 527,625 Other current liabilities Inventories 301,500 Notes payable to bank Total current assets $904,500 Total current liabilities Long-term debt Net fixed assets 603,000 Common equity (63,315 shares) Total assets $1,507,500 Total liabilities and equity $150,750 195,975 150,750 $497,475 $376,875 633,150 $1,507,500 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,250,000 Cost of goods sold Materials $1,102,500 Labor 472,500 Heat, light, and power 135,000 Indirect labor 90,000 Depreciation 45,000 1,845,000 Gross profit $ 405,000 Selling expenses 247,500 General and administrative expenses $ 45,000 Earnings before interest and taxes (EBIT) $ 112,500 Interest expense 26,381 Earnings before taxes (EBT) $ 86,119 Federal and state income taxes (40%) 34,448 Net income 51,671 Earnings per share $ 0.81609 Price per share on December 31, 2018 11.00 a. Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.77x Quick 1.18% Days sales outstanding days 40.76 days Inventory turnover X 7.68% Total assets turnover 1.74% Profit margin 96 2.19% ROA % 3.81% ROE 8.68% ROIC 7.10% TIE 4.31x Debt/Total capital yo 46.95% M/B 3.10% P/E 15.48% EV/EBITDA % 9.41% "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 % 2.19% Total assets turnover 1.74% Equity multiplier X
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