Answered step by step
Verified Expert Solution
Question
1 Approved Answer
fx B C D Problem 4-22 a, b, c Data for Barry Computer Co. and its industry averages follow. 1 2 3 4 Barry Computer
fx B C D Problem 4-22 a, b, c Data for Barry Computer Co. and its industry averages follow. 1 2 3 4 Barry Computer Company 5 6 Balance Sheet as of December 31, 2018 7 (in Thousands) 8 Assets $77,500 Cash 9 A/R 336,000 10 Inventories 241,500 11 $655,000 Total CA 12 Net Fixed Assets 292,500 13 Total Assets $947,500 14 15 Liabilities & Equity Accts payable Notes payable 16 $129,000 17 84,000 18 117,000 $330,000 256,500 361,000 $947,500 Accruals 19 Total CL 20 Long-term debt Common Equity 21 22 Total L&E 23 24 25 Income Statement for the Year Ended December 31, 2018 (in Thousands) 26 27 Sales $1,607,500 28 COGS $717,000 29 Materials 30 Labor 453,000 Heat, light, power 31 68,000 113,000 41,500 32 Indirect labor 33 1,392,500 $215,000 115,000 30,000 $70,000 24,500 $45,500 18,200 $27,300 Depreciation 34 Gross Profit 35 Selling Expenses 36 G &A 37 EBIT 38 Interest 39 T 40 es 41 Net Income a. Calculate the indicated ratios for Barry Barry Industry Current 2.0 Quick 1.3 35 days DSO n. 6.7 PM ROA 3.0 1.20% 3.60% ROE 9.00% b. Construct the DuPont equation for both Barry and the industry Ratio Formula Barry Industry Example: ROE NI/E 9.0% c. Outline Barry's strengths and weaknesses as revealed by your analysis Enter answer in N44. You'll have more space. Be sure to discuss ROE, PM, TATO and EM. When discussing TATO, be sure to address INVTO, FATO, and DSo
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started