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Problem 4-23 Ratio Analysis Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance Sheet as of December 31, 2014 (In

Problem 4-23 Ratio Analysis

Data for Barry Computer Co. and its industry averages follow.

Barry Computer Company:
Balance Sheet as of December 31, 2014 (In Thousands)
Cash $51,840 Accounts payable $77,760
Receivables 181,440 Other current liabilities 58,320
Inventories 155,520 Notes payable 51,840
Total current assets $388,800 Total current liabilities $187,920
Long-term debt $142,560
Net fixed assets 259,200 Common equity 317,520
Total assets $648,000 Total liabilities and equity $648,000

Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands)
Sales $1,200,000
Cost of goods sold
Materials $564,000
Labor 252,000
Heat, light, and power 60,000
Indirect labor 120,000
Depreciation 48,000 $1,044,000
Gross profit $156,000
Selling expenses 108,000
General and administrative expenses 24,000
Earnings before interest and taxes (EBIT) $24,000
Interest expense 11,405
Earnings before taxes (EBT) 12,595
Federal and state income taxes (40%) 5,038
Net income $7,557

Calculate the indicated ratios for Barry. Round your answers to two decimal places.

Ratio Barry Industry Average
Debt/Total capital?? % 45.00%

aCalculation is based on a 365-day year.

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