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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 $ 43,750 Accounts payable $ 122,500
Receivables 245,000 Other current liabilities 140,000
Inventories 183,750 Notes payable to bank 52,500
Total current assets $ 472,500 Total current liabilities $ 315,000
Long-term debt 175,000
Net fixed assets 402,500 Common equity (38,500 shares) 385,000
Total assets $ 875,000 Total liabilities and equity $ 875,000

Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands)
Sales $ 1,250,000
Cost of goods sold
Materials $575,000
Labor 287,500
Heat, light, and power 75,000
Indirect labor 75,000
Depreciation 25,000 1,037,500
Gross profit $ 212,500
Selling expenses 112,500
General and administrative expenses 37,500
Earnings before interest and taxes (EBIT) $ 62,500
Interest expense 17,500
Earnings before taxes (EBT) $ 45,000
Federal and state income taxes (25%) 11,250
Net income $ 33,750
Earnings per share $ 0.8766
Price per share on December 31, 2019 $ 13.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 1.47
    Quick 0.89
    Days sales outstandinga days 34 days
    Inventory turnover 7.00
    Total assets turnover 1.58
    Profit margin % 2.57 %
    ROA % 4.06 %
    ROE % 9.33 %
    ROIC % 7.90 %
    TIE 3.67
    Debt/Total capital % 36.04 %
    M/B 3.30
    P/E 17.58
    EV/EBITDA 10.66
    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 % 2.57%
    Total assets turnover 1.58
    Equity multiplier

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