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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 $ 69,000 Accounts payable $ 89,700
Receivables 269,100 Other current liabilities 69,000
Inventories 207,000 Notes payable to bank 41,400
Total current assets $ 545,100 Total current liabilities $ 200,100
Long-term debt 138,000
Net fixed assets 144,900 Common equity (35,190 shares) 351,900
Total assets $ 690,000 Total liabilities and equity $ 690,000

Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands)
Sales $ 1,000,000
Cost of goods sold
Materials $430,000
Labor 250,000
Heat, light, and power 70,000
Indirect labor 70,000
Depreciation 20,000 840,000
Gross profit $ 160,000
Selling expenses 90,000
General and administrative expenses 20,000
Earnings before interest and taxes (EBIT) $ 50,000
Interest expense 15,180
Earnings before taxes (EBT) $ 34,820
Federal and state income taxes (25%) 8,705
Net income $ 26,115
Earnings per share $ 0.7421
Price per share on December 31, 2019 $ 10.00

  1. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
    Ratio Barry Industry Average
    Current 2.75
    Quick 1.63
    Days sales outstandinga days 47 days
    Inventory turnover 5.18
    Total assets turnover 1.69
    Profit margin % 2.49 %
    ROA % 4.21 %
    ROE % 8.25 %
    ROIC % 8.00 %
    TIE 3.20
    Debt/Total capital % 33.17 %
    M/B 3.00
    P/E 16.35
    EV/EBITDA 9.25
    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 % 2.49%
    Total assets turnover 1.69
    Equity multiplier

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