Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced pie the market value of its debt was its book

image text in transcribed
image text in transcribed
Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced pie the market value of its debt was its book value. Since dollars are in thousand, number of shares are shown in thousands to Harry Computer Company Balance Sheet as of December 31, 2019 (In Thousands) $ 740 Accounts payable $121.680 Receivables SOLO Other current Babes 131,040 Inventos 271.440 Notes payable to bank Total current $ 655 200 Total curren c ies $ 37.600 Long term debt 224.640 2000 Common equity (1,376 shares) 383.750 Total $ 936.000 Totalities and equity $936.000 Barry Computer Company Income Statement for Yearded December 2010 (In Thousands) $1.300.000 Cost of goods sold Materials $624,000 325.000 Heat, light, and power 65.000 Indirect labor 91.000 Depreciation 26.000 1.131.000 Gross profit Seling expenses General and w e expenses Emi ornare and tres (BIT) Earning bo xes EBT Federal and state income taxes (259 E nca per share Price per share on December 31, 2019 days Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.05 x Quick 1.22 Days sales outstanding 41 days Inventory turnover 5.13 x Total assets turnover 1.54 x Profit margin 2.21 % ROA 3.40% ROE 8.75% ROIC 7.50% TIE 2.60 x Debt/Total capital 44.74% M/B 5.40 P/E 19.88 EV/EBITDA 10.58 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 Drofit margin 2.219 Total assets tumover 1.54 Equity multiplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Covered Calls Option Trading Strategy

Authors: Andrew P.C.

1st Edition

1549658697, 978-1549658693

More Books

Students also viewed these Finance questions

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago