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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 $ 143,000 Accounts payable $ 185,900 Receivables 429,000 Other current liabilities 128,700 Inventories 300,300 Notes payable to bank 71,500 Total current assets $ 872,300 Total current liabilities $ 386,100 Long-term debt 286,000 Net fixed assets 557,700 Common equity (75,790 shares) 757,900 Total assets $ 1,430,000 Total liabilities and equity $ 1,430,000 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 2,200,000 Cost of goods sold Materials $1,012,000 Labor 572,000 Heat, light, and power 132,000 Indirect labor 88,000 Depreciation 88,000 1,892,000 Gross profit $ 308,000 Selling expenses 132,000 General and administrative expenses 66,000 Earnings before interest and taxes (EBIT) $ 110,000 Interest expense 22,880 Earnings before taxes (EBT) $ 87,120 Federal and state income taxes (25%) 21,780 Net income $ 65,340 Earnings per share $ 0.8621 Price per share on December 31, 2019 $ 11.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 2.22
    Quick 1.53
    Days sales outstandinga days 33 days
    Inventory turnover 7.69
    Total assets turnover 1.83
    Profit margin % 2.78 %
    ROA % 5.08 %
    ROE % 9.58 %
    ROIC % 7.70 %
    TIE 4.72
    Debt/Total capital % 33.15 %
    M/B 3.10
    P/E 15.52
    EV/EBITDA 7.48
    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 % 2.78%
    Total assets turnover 1.83
    Equity multiplier

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