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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 $ 204,750 Accounts payable $ 160,875
Receivables 511,875 Other current liabilities 146,250
Inventories 365,625 Notes payable to bank 117,000
Total current assets $ 1,082,250 Total current liabilities $ 424,125
Long-term debt 292,500
Net fixed assets 380,250 Common equity (74,587.5 shares) 745,875
Total assets $ 1,462,500 Total liabilities and equity $ 1,462,500

Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands)
Sales $ 1,950,000
Cost of goods sold
Materials $936,000
Labor 448,500
Heat, light, and power 78,000
Indirect labor 175,500
Depreciation 39,000 1,677,000
Gross profit $ 273,000
Selling expenses 136,500
General and administrative expenses 39,000
Earnings before interest and taxes (EBIT) $ 97,500
Interest expense 20,475
Earnings before taxes (EBT) $ 77,025
Federal and state income taxes (25%) 19,256
Net income $ 57,769
Earnings per share $ 0.7745
Price per share on December 31, 2019 $ 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 2.56
    Quick 1.66
    Days sales outstandinga days 46 days
    Inventory turnover 5.49
    Total assets turnover 1.47
    Profit margin % 2.82 %
    ROA % 4.16 %
    ROE % 8.24 %
    ROIC % 7.00 %
    TIE 4.81
    Debt/Total capital % 36.34 %
    M/B 3.10
    P/E 16.54
    EV/EBITDA 9.52
    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 % 2.82%
    Total assets turnover 1.47
    Equity multiplier

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