The Assignment: Barry Computer Company

Prepare a performance report on Barry Computer Company. (Problem 4-23 on pages 131-132 of the course text provides a balance sheet and an income statement for the company.)

Prepare your performance report to show calculations for the eleven ratios listed on page 131-132, as well as a comparison of your computed ratios with the listed industry averages.

I PREPARED THE REPORT BELOW

Ratio	Formula	Year 2015	Industry average
Current Ratio	Current Assets / Current Liabilities	2.0	2
	Current Assets	655000.00
	Current Liabilities	330000.00
Quick ratio	Cash+ Short term Investment +Receivables net) / Current Liability	1.3	1.3
	Cash	77500.00
	Short term Investments	0.00
	Receivables	336000.00
	Current Liabilities	330000.00
Days Sales outstanding	Average accounts receivable*365/Sales Revenue	76	35
	Net Sales revenue	1607500.00
	Average accounts receivable	336000.00
Inventory Turnover	Cost of Goods Sold/ Average Inventory	5.8	6.7
	Cost of Goods Sold	1392500.00
	Average Inventory	241500.00
Asset turnover	Total Revenue/Average total Assets	2	3
	Total Revenue	1607500.00
	Average total Assets	947500.00
Net Profit Margin	Net Income/Total Revenue	1.70%	1.20%
	Net income	27300.00
	Total Revenue	1607500.00
Return on asset	Net income/Total assets	2.9%	3.60%
	Net Income	27300.00
	Total Assets	947500.00
Return on equity	Net income/Average Stockholder's Equity	8%	9%
	Net Income	27300.00
	Average Stockholder's Equity	361000.00
Return on capital invested	Net Income - dividend/Total Capital	2.88%	7.50%
	Net Income	27300.00
	Dividend	0
	Total Capital	947500.00
Time Interest earned	(Net Income +Interest+ Income Tax expense)/Interest Expense	3	3
	Net income	27300.00
	Interest Expense	24500.00
	Income Tax Expense	18200.00
Debt to total capital	Total Liabilities/Total capital	62%	47%
	Total Liabilities	586500.00
	Total capital	947500.00

NEED HELP WITH WRITING:

Write a (1-2 PAGES IN LENGTH) memo to your supervisor explaining your findings and your recommendations for improvement.

Suggest some ways in which the company can plan to improve below industry average ratio performance.

Explain why your recommendations would be effective.

Be sure to list your computations in an appendix to your report.

PLEASE NO SHORT ANSWERS OR PLAGIARISM (1-2 PAGES)