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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 $84,150 Accounts
Data for Barry Computer Co. and its industry averages follow. Barry Computer Company:
Balance Sheet as of December 31, 2016 (In Thousands)
Cash | $84,150 | Accounts payable | $224,400 | |
Receivables | 504,900 | Other current liabilities | 126,225 | |
Inventories | 378,675 | Notes payable to bank | 112,200 | |
Total current assets | $967,725 | Total current liabilities | $462,825 | |
Long-term debt | $322,575 | |||
Net fixed assets | 434,775 | Common equity | 617,100 | |
Total assets | $1,402,500 | Total liabilities and equity | $1,402,500 |
Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands)
Sales | $2,550,000 | ||
Cost of goods sold | |||
Materials | $1,071,000 | ||
Labor | 637,500 | ||
Heat, light, and power | 153,000 | ||
Indirect labor | 204,000 | ||
Depreciation | 76,500 | 2,142,000 |
Gross profit | $ 408,000 | |
Selling expenses | 255,000 | |
General and administrative expenses | 25,500 | |
Earnings before interest and taxes (EBIT) | $ 127,500 | |
Interest expense | 29,032 | |
Earnings before taxes (EBT) | $ 98,468 | |
Federal and state income taxes (40%) | 39,387 | |
Net income | $ 59,081 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio | Barry | Industry Average |
Current | x | 2.02x |
Quick | x | 1.30x |
Days sales outstandinga | days | 34.41 days |
Inventory turnover | x | 6.93x |
Total assets turnover | x | 2.12x |
Profit margin | % | 2.21% |
ROA | % | 4.68% |
ROE | % | 10.19% |
ROIC | % | 7.90% |
TIE | x | 4.49x |
Debt/Total capital | % | 40.03% |
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 | % | 2.21% |
Total assets turnover | x | 2.12x |
Equity multiplier | x | x |
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