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Please make answers clear as per the questions. Thanks - guaranteed thumbs up for correct work! Can be quick, no need for explanation. Data for
Please make answers clear as per the questions.
Thanks - guaranteed thumbs up for correct work!
Can be quick, no need for explanation.
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, 2018 (In Thousands) Cash $125,125 Accounts payable $182,000 Receivables 398,125 Other current liabilities 91,000 Inventories 318,500 Notes payable to bank 125,125 Total current assets $841,750 Total current liabilities $398,125 Long-term debt $261,625 Net fixed assets 295,750 Common equity (47,775 477,750 shares) Total assets $1,137,500 Total liabilities and equity $1,137,500 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $1,750,000 Cost of goods sold Materials $735,000 Labor 455,000 Heat, light, and power 70,000 Indirect labor 175,000 Depreciation 70,000 1,505,000 245,000 140,000 17,500 87,500 28,779 58,721 23,488 $ 35,233 $ 0.73748 12.00 Gross profit Selling expenses General and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income Earnings per share Price per share on December 31, 2018 $ $ $ a. Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current 2.07x X Quick 1.26x Days sales outstandinga 38.80 days Inventory turnover 5.76x Total assets turnover 1.83x Profit margin 1.88% ROA 3.44% ROE 8.19% ROIC 7.80% TIE 2.97x Debt/Total capital 43.44% M/B 5.20% P/E 18.77% % EV/EBITDA 7.88% % Calculation is based on a 365-day year. b. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin 1.88% Total assets turnover 1.83x Equity multiplier XX days X % * % % *% X XX X % % % X XStep by Step Solution
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