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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, the number of shares is shown in thousands too.

Barry Computer Company:
Balance Sheet as of December 31, 2021 (in thousands)
Cash $ 164,250 Accounts payable $ 262,800
Receivables 509,175 Other current liabilities 147,825
Inventories 377,775 Notes payable to bank 197,100
Total current assets $ 1,051,200 Total current liabilities $ 607,725
Long-term debt 443,475
Net fixed assets 591,300 Common equity (59,130 shares) 591,300
Total assets $ 1,642,500 Total liabilities and equity $ 1,642,500

Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands)
Sales $ 2,250,000
Cost of goods sold
Materials $1,057,500
Labor 607,500
Heat, light, and power 90,000
Indirect labor 157,500 1,912,500
Gross profit $ 337,500
Selling expenses 135,000
General and administrative expenses 22,500
Depreciation 67,500
Earnings before interest and taxes (EBIT) $ 112,500
Interest expense 53,217
Earnings before taxes (EBT) $ 59,283
Federal and state income taxes (25%) 14,821
Net income $ 44,462
Earnings per share $ 0.7519
Price per share on December 31, 2021 $ 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 1.74
    Quick 1.16
    Days sales outstandinga days 39 days
    Inventory turnover 6.50
    Total assets turnover 1.54
    Profit margin % 1.85 %
    ROA % 2.85 %
    ROE % 8.35 %
    ROIC % 7.40 %
    TIE 2.02
    Debt/Total capital % 50.90 %
    M/B 3.10
    P/E 17.54
    EV/EBITDA 9.15
    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 % 1.85%
    Total assets turnover 1.54
    Equity multiplier

Just section B

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