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please help! Im so lost with this one. please solve and explain. Thank you in advance! thousands, number of shares are shown in thousands too:

please help! Im so lost with this one. please solve and explain. Thank you in advance!
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thousands, number of shares are shown in thousands too: Barry Computer Company: Income Statement for Year Ended December 31,2019 (In Thousands) Sales Cest of goods soid Barry Computer Company: *Calculation is based on a 365 -day year. 26, Construct the Dupont equation for both Barry and the industry. Do not round intermediate calculations, flound your answers to two decimal piocese TMniletav c. Select the correct option based on Barry's strengths and weaknesses as revealed by your anabysis. I. The frm's days sales outstanding ratio is more than the industry average, indicating thet the firm should tighten credit or enforce a more stringent coliection policy. The total assets turnover ratio is well above the industry averoge so sales should be increased, assets increased, or both. While the company's profit margin is higher than the industry everage, its other profitebility ratios are iow compared to the industry - net in come should be higher given the amount of equity, assets, and imvested capital. However, the company seems to be in an above average fiquidity position and finandal leverage is similar to others in the industry. II. The firm's deys sales outstanding ratio is comparable to the industry average, indicating that the firm should neither tighten credit nor enforce a more stringent colloction pollcy. The total assets turnover ratio is weli beiow the industry average so sales should be increased, assets incroased, of both. While the company's profit margin is higher than the industry average, its other prontabilty ratios are iow compared to the industry - net income should be higher given the amount of equity, assets, and invested copitat, However, the company seems to be in a below averoge ilquidity poition and financial leverage is similar to others in the industry. III. The firm's days sales outstanding ratio is more than twice as long as the industry averoge, indicating that the firm should tighten redit or enforce a more stringent collection poticy. The total assets turnover ratio is weli below the industry average so sales should be incressed, assets decreased, or both. Whille 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 given the amount of equity, assets, and invested capital. Finaliy, it's market value ratios are atso below industry averages. However, the company seems to be in an average liquidity position and financial leverage is similar to others in the industry. IV. The firm's deys seles outstanding ratio is more than twice as long as the industry averoge, Indicating that the firm should toosen credit or apply a iess stringent collection policy. The total assets turnover ratio is well below the industry average so sales should be increased, assets increased, or both. While the company's profit margin is higher then the industry average, its other profitability ratios are low compared to the ind ustry - net income should be higher given the amount of equity, assets, and invested capital. However, the company seems to be in an average liquidity posibon and financiat leverage is simitar to others in the industry. V. The firm's deys sejes outstanding ratio is less than the industry average, indicating that the firm should tighten credit or enforce a more stringent. coliection policy. The total assets turnover ratio is well below the industry average so sales should be increased, essets decreased, or both. Whine the company's proft maryin is lower than the industry average, its other profitablity ratios are high compared to the industry - net income should be higher clven the amount of equity, assets, and invested capital. Howevet, the company seems to be in an average liquidity pesition and financal leverage is similar to others in the industry. d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019 , Fow would that iriormilion aited tim velicity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios it averages are not used. No calcuietions are needed.) 1. If 2019 represents a period of normal growth for the firm, ratios besed on this year will be accurate and a comperison between them and industry everages will have substantial meaning. Potential investors who look only at 2019 ratios will be misled, and a return to supernormal conditicns in 2020 could thart the firm's stock price. II. 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 substantiel meaning. Potential investors 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. III. It 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 condivons in 2020 could hurt the firm's stock price. TV. If 2019 represents a period 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. Potentiel irvestors need only look at 2019 ratios to be well informed, and a return to normat conditions in 2020 could help the firm's stock price. V. If 2019 represents a period of normal growth for the firm, ratios based an this year will be distorted and a comparison between them and industry everages will have tittle meaning. Potential investors who look only at 2019 ratios will be misled, and a continuation of normal conditions in 2020 could hurt the firm's stock price

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