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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 $ 100,800 Accounts payable Receivables 327,600 Other current liabilities Inventories 352,800 Notes payable to bank Total current assets $ 781,200 Total current liabilities Long-term debt Net fixed assets 478,800 Common equity (60,480 shares) Total assets $ 1,260,000 Total liabilities and equity $ 126,000 126,000 113,400 $ 365,400 289,800 604,800 $ 1,260,000 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $2,250,000 Cost of goods sold Materials $1,080,000 Labor 450,000 Heat, light, and power 135,000 Indirect labor 135,000 Depreciation 90,000 1,890,000 Gross profit $ 360,000 Selling expenses 247,500 General and administrative expenses 22,500 Earnings before interest and taxes (EBIT) $ 90,000 Interest expense 31,878 Earnings before taxes (EBT) $ 58,122 Federal and state income taxes (25%) 14,531 Net income $ 43,591 Earnings per share $ 0.7208 Price per share on December 31, 2019 $ 14.00 a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.19 x x Quick x 1.11 x Days sales outstandinga days 25 days Inventory turnover x 6.96 Total assets turnover x 2.01 x o Profit margin 1.81 % ROA o 3.64 % o ROE 8.01 % o ROIC 7.90 % x TIE 2.77 o Debt/Total capital 40.90 % M/B 5.40 P/E 21.98 EV/EBITDA 8.62 Calculation 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 1.81% X Total assets turnover 2.01x Equity multiplier X
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