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Sales follow. The value. Since dol- the RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follo firm's debt is priced at par,

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Sales follow. The value. Since dol- the RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follo firm's debt is priced at par, so the market value of its debt equals its book value. Sin lars are in thousands, number of shares are shown in thousands too, a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. c. Outline Barry's strengths and weaknesses as revealed by your analysis. d. Suppose Barry had doubled its sales as well as its inventories, accounts receiv common equity during 2019. How would that information affect the validity ratio analysis? (Hint: Think about averages and the effects of rapid growth on averages are not used. No calculations are needed.) ints receivable, and e validity of your id growth on ratios if Barry Computer Company: Balance Sheet as of December 31, 2019 (in Thousands) Cash $ 77,500 Accounts payable Receivables 336,000 Other current liabilities Inventories 241,500 Notes payable to bank Total current assets $ 655,000 Total current liabilities Long-term debt Net fixed assets 292,500 Common equity (36,100 shares) Total assets $ 947,500 Total liabilities and equity $129,000 117,000 84,000 $330,000 256,500 361,000 $947,500 Adlysis of Financial Statements Barry Computer Company. Income Statement for Year Ended December 31, 2019 in Thousands) Sales Cost of goods sold Materials $1,607,500 Labor $717,000 453,000 68,000 113,000 41,500 Heat, light, and power Indirect labor Depreciation 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 (25%) Net income $ 1,392,500 215,000 115,000 30,000 70,000 21,000 49,000 12,250 36.750 Earnings per share Price per share on December 31, 2019 $ $ 1.018 12.00 Industry Average 20x 1.3x 35 days 6.7% 3.0x Ratio Current Quick Days sales outstanding Inventory turnover Total assets turnover Profit margin ROA ROE ROIC TIE Debt/Total capital M/B 1.6% 4.8% 12.1% 9.4% 3.5x 47.0% 4.22x 13.27 P/E 9.14 EV/EBITDA "Calculation is based on a 365-day year

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