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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 $ 211,140 Accounts payable $ 281,520 Receivables 545,445 Other current liabilities 246,330 Inventories 457,470 Notes payable to bank 158,355 Total current assets $ 1,214,055 Total current liabilities 686,205 Long-term debt 527,850 Net fixed assets 545,445 Common equity (54,544.5 545,445 shares) Total assets $ 1,759,500 Total liabilities and equity $ 1,759,500 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 2,550,000 Cost of goods sold Materials $1,147,500 Labor 714,000 Heat, light, and power 102,000 Indirect labor 204,000 Depreciation 127,500 2,295,000 Gross profit $ 255,000 Selling expenses 127,500 General and administrative expenses 25,500 Earnings before interest and taxes (EBIT) $ 102,000 Interest expense 42,228 Earnings before taxes (EBT) $ 59,772 Federal and state income taxes (25%) 14,943 Net income $ 44,829 Earnings per share $ 0.8219 Price per share on December 31, 2019 $ 12.00 x x a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.73 x Quick 1.05 x Days sales outstandinga days 36 days Inventory turnover 5.85 x Total assets turnover 1.63 x Profit margin 1.64% ROA 2.68% 8.74% ROIC 7.80% TIE 2.39 x Debt/Total capital 56.81% 5.20 P/E 17.12 EV/EBITDA 7.78 ROE M/B aCalculation is based on a 365-day year. b. 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 1.64% Total assets turnover 1.63% Equity multiplier
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