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: Tnwama clabamant for Yaat Fnded necamber 31. 2019 (In Thousands) TCaiculation is bared on a 365 -day year. b. Construct the DuPont equation for both. Barry and the industry. Do not round intermediate caiculations. Round your answars to two decimal Select the correct option based on Barry's strengths and weaknesses as revealed by yout 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 more stringent coliection pollcy. The total assets turnover ratio is well below the industry average so sales should be increased, assets decreased, or both. While the company's prefit maroin is lower than the industry average, its other profitability ratios are high compared to the industry - net income should be higher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquildity position and financial leverage is similar to others in the industry. 14. The firm's days sales outstanding ratio is more 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 above the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry average, ths other profitablity ratios are fow compared to the industry - net incomie shdeld be higher glven the amount of equity, assets, and invested capital. However, the company seems to be in an above average liquidity position and financial leveroge is similar to others in the industry. III. The firm's days sales outstanding ratio is comparable to the industry average, indicating that the firm should nelther tighten credif nor enforce a miore stringent collection poilcy. 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 profitablity ratios are low compared to the industry - net income should be Thater given the amount of equity, assets, and invested capital, However, the company seems to be in a below awirage liquidity position and financiat 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 sthould tighten credit of enforce a more ntringent collection policy. The total assets turnover ratio is well below the industry averape so sales should be increased, assets decreased, of thet . Whilen The compary's protit margin is higher than the industry awerage, its other profiability tatios are low coeppared to the industry * net income should be higher glven the amosint of equity, assets, and invested capital. Hinally, il's market value ratios are alvo below industry averages. Rowevec, the company seems to be in an avesoge ligudity postion end financial leverage is simifar to others in the indristry. V. The firm's days soles outstanting ratio is more than twice as iong as the industry average, indicating that the firm should lonsen atedit or apply a less stringent collection policy. The total assete turtsover ratio k well below the indistry average so sales should be increased, assets increased, of both. While the company's profit margin is ivgher than the industry average, its other profitability ratios are low compared to the indiustry - net income should he thigher given the amount of equity, assets, and invested copltal. However, the company seems to be la an average ligialdity position and financial feveragh is sinnshar to others in the industry. d. Suppose Barty had doubled its sales as well as its inventories, accounts receivable, and common equty during 2019 . How would that information affect the validizy of your ratio anslysis? (Hint; Think about averages and the effects of rapld 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 bosed on this year will be distorted and a comparison between them and industry averages will fave Lttle meaning. Potentiel investors who look only at 2019 ratios will be misled, and a continication of normal conditions in 2020 could hurt the firm's stock price 11. If 2019 represents a period of normat drowth for the firm, ratios based on this year will be occurate and a comparkon betwn them and industry averooes wilt have substontial meoning. Potential investors who look only at 2019 ratios will be misled, and a retiern to spernormar forditions in 2020 coufd hirt the firm's stock price IIf Tif 2019 retresents a period of supernormal growth for the firm, ratios based on this year will be dietorted and a compsrison between them and indistry averages will have subdontial meaning. Potential irwestors who look only at 2019 ratios will be well informed, and a return to normat conditions in 2020 ) could hurt the firm's stock price FV. If 2019 represents a period of supernormal prowth for the firm, ratios based on this year will bir distorted and a comparison befween them and industry firen's stock, price. V. If 2019 represents a beriod of supernormal growth for the firm, ratlos based on this year will be accurate ond a comparieon betwion thein and inchasty. averages will have substantial meaning. Potental lirvestors need only look at 2019 ratios to be well informed, and a tetum fo norimal conefisions in 2090 . ctould help the firm's stock peice