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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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