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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 $168,480 Accounts
Data for Barry Computer Co. and its industry averages follow.
Barry Computer Company: | ||||
Balance Sheet as of December 31, 2016 (In Thousands) | ||||
Cash | $168,480 | Accounts payable | $318,240 | |
Receivables | 542,880 | Other current liabilities | 187,200 | |
Inventories | 468,000 | Notes payable to bank | 93,600 | |
Total current assets | $1,179,360 | Total current liabilities | $599,040 | |
Long-term debt | $374,400 | |||
Net fixed assets | 692,640 | Common equity | 898,560 | |
Total assets | $1,872,000 | Total liabilities and equity | $1,872,000 |
Barry Computer Company: Income Statement for Year Ended December 31, 2016 (In Thousands) | |||
Sales | $2,600,000 | ||
Cost of goods sold | |||
Materials | $1,144,000 | ||
Labor | 676,000 | ||
Heat, light, and power | 182,000 | ||
Indirect labor | 104,000 | ||
Depreciation | 52,000 | 2,158,000 |
Gross profit | $ 442,000 | |
Selling expenses | 234,000 | |
General and administrative expenses | 78,000 | |
Earnings before interest and taxes (EBIT) | $ 130,000 | |
Interest expense | 26,208 | |
Earnings before taxes (EBT) | $ 103,792 | |
Federal and state income taxes (40%) | 41,517 | |
Net income | $ 62,275 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio | Barry | Industry Average |
Current | _____x | 1.93x |
Quick | ______ x | 1.22x |
Days sales outstandinga | _____ days | 35.61 days |
Inventory turnover | ______x | 6.07x |
Total assets turnover | ______ x | 1.56x |
Profit margin | ______ % | 2.24% |
ROA | ______% | 3.50% |
ROE | ______% | 7.70% |
ROIC | _____ % | 7.60% |
TIE | _____x | 4.89x |
Debt/Total capital | ______ % | 35.35% |
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 | ____ % | 2.24% |
Total assets turnover | _____x | 1.56x |
Equity multiplier | _____ x | _____x |
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