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Dota 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

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Dota 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: Income Statement for Year Inded December 31, 2019 (In Thousands) Barry Computer Company: a. Calculate the indicated ratios for Ekrry. Do not round intermediate calculations. Round your answers to two decimal places. "Calculation is based on a 365 -day year. a. Construct the Dupont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to fwo decimal places. iNDUSTRY c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a inore stringt collection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets decreased, or both. Why the company's proft margin is lower than the industry average, its other profitability ratios are high compared to the industry - net income sh the company's prent margin of equity, assets, and ifvested capital, However, the compary seems to be in an average liquldity position and c. Select the correct optlon based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days saies outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit marpin is lower than the industry average, its other profitability ratios are high compared to the industry - net income shotild be higher glven the amount of equity, assets, and investod capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. II. The firm's days sales outstanding ratio is more than the industry averoge, indicating that the firm should bighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well above the industry average so sales should be increased, assets increased, of both. While the company's proft margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher olven the amount of equity, assets, and invested capital, However, the company seems to be in an above average liquidity position and financial leverage is similar to others in the industry. III. The firm's days sales outstanding ratio is comparable to the industry averoge, indicating that the firm should neither bighten credit nor enforce a more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assats increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher qiven the amount of equity, assets, and invested capital. However, the company seerns to be in a below average liquidity position and financial leverage is similar to others in the industry. IV. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more stringent coliection policy. The total assets turnover ratio is welli below the industry average so sales shouid be increased, assets deceased, or both. Whilin the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the Industry - net income srould be higher given the amount of equity, assets, and invested capital, Finally, it's market value ratios are aiso below industry averages. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. V. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the frm should loosen credit or apply a lens stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, of both. While the company's profit margin is higher than the industry average, its other profitability fatios are low compared to the industry = net inceme should be higher given the amount of equity, assets, and invested capital, However, the company seems to be in an average tiguidity. position and. financial leverage is slmilar to others in the industry? d. Suppose Barry had doubled its saies as well as its inveritories, eccounts recelvable, and common equity during 2019 . How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) 1. If 2019 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry aversges will have substantial meaning. Potential investors who look only at 2019 ratios will be misied, and a return to superhormal conditions in 2020 could hurt the firm's stock price. 13. If 2019 represents a period of supernormal growth for the firm, ratics based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potentiaf inveitors who look only at 2049 ratios will be well infoented, ard a return to normal when aniald buint the firm's stock orice Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019 , How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) 1. If 2019 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 ratios will be misled, and a return to supernormal conditions in 2020 could hurt the firm's stock price. II. If 2019 represents a period of supemormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 ratios will be well informed, and a return to noemal conditions in 2020 could hurt the firm's stock price. III. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have little meaning. Potential investors who look only at 2019 ratios will be misied, and a return to normal conditions in 2020 could hurt the firm's stock price. TV. If 2019 represents a pellod of supernormal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors need only look at 2019 ratios to be well informed, and a return to normal conditions in 2020 could help the firm's stock price. V. If 2019 represents a period of normal growth for the fim, ratios based on this year will be distorted and a comparison between them and industr averages will have little meaning. Potential investors who look only at 2019 ratios will be misied, and a continuation of normal conditions in 2020 could hurt the firm's stock price. Dota 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: Income Statement for Year Inded December 31, 2019 (In Thousands) Barry Computer Company: a. Calculate the indicated ratios for Ekrry. Do not round intermediate calculations. Round your answers to two decimal places. "Calculation is based on a 365 -day year. a. Construct the Dupont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to fwo decimal places. iNDUSTRY c. Select the correct option based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days sales outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a inore stringt collection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets decreased, or both. Why the company's proft margin is lower than the industry average, its other profitability ratios are high compared to the industry - net income sh the company's prent margin of equity, assets, and ifvested capital, However, the compary seems to be in an average liquldity position and c. Select the correct optlon based on Barry's strengths and weaknesses as revealed by your analysis. 1. The firm's days saies outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent collection policy. The total assets tumover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's profit marpin is lower than the industry average, its other profitability ratios are high compared to the industry - net income shotild be higher glven the amount of equity, assets, and investod capital. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. II. The firm's days sales outstanding ratio is more than the industry averoge, indicating that the firm should bighten credit or enforce a more stringent collection policy. The total assets turnover ratio is well above the industry average so sales should be increased, assets increased, of both. While the company's proft margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher olven the amount of equity, assets, and invested capital, However, the company seems to be in an above average liquidity position and financial leverage is similar to others in the industry. III. The firm's days sales outstanding ratio is comparable to the industry averoge, indicating that the firm should neither bighten credit nor enforce a more stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assats increased, or both. While the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the industry - net income should be higher qiven the amount of equity, assets, and invested capital. However, the company seerns to be in a below average liquidity position and financial leverage is similar to others in the industry. IV. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the firm should tighten credit or enforce a more stringent coliection policy. The total assets turnover ratio is welli below the industry average so sales shouid be increased, assets deceased, or both. Whilin the company's profit margin is higher than the industry average, its other profitability ratios are low compared to the Industry - net income srould be higher given the amount of equity, assets, and invested capital, Finally, it's market value ratios are aiso below industry averages. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. V. The firm's days sales outstanding ratio is more than twice as long as the industry average, indicating that the frm should loosen credit or apply a lens stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, of both. While the company's profit margin is higher than the industry average, its other profitability fatios are low compared to the industry = net inceme should be higher given the amount of equity, assets, and invested capital, However, the company seems to be in an average tiguidity. position and. financial leverage is slmilar to others in the industry? d. Suppose Barry had doubled its saies as well as its inveritories, eccounts recelvable, and common equity during 2019 . How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) 1. If 2019 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry aversges will have substantial meaning. Potential investors who look only at 2019 ratios will be misied, and a return to superhormal conditions in 2020 could hurt the firm's stock price. 13. If 2019 represents a period of supernormal growth for the firm, ratics based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potentiaf inveitors who look only at 2049 ratios will be well infoented, ard a return to normal when aniald buint the firm's stock orice Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019 , How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.) 1. If 2019 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 ratios will be misled, and a return to supernormal conditions in 2020 could hurt the firm's stock price. II. If 2019 represents a period of supemormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 ratios will be well informed, and a return to noemal conditions in 2020 could hurt the firm's stock price. III. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have little meaning. Potential investors who look only at 2019 ratios will be misied, and a return to normal conditions in 2020 could hurt the firm's stock price. TV. If 2019 represents a pellod of supernormal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors need only look at 2019 ratios to be well informed, and a return to normal conditions in 2020 could help the firm's stock price. V. If 2019 represents a period of normal growth for the fim, ratios based on this year will be distorted and a comparison between them and industr averages will have little meaning. Potential investors who look only at 2019 ratios will be misied, and a continuation of normal conditions in 2020 could hurt the firm's stock price

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