Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) Cash $167,440 Accounts payable $191,360 Receivables 382,720 Other current liabilities 179,400 Inventories 299,000

image text in transcribed
image text in transcribed
image text in transcribed
Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) Cash $167,440 Accounts payable $191,360 Receivables 382,720 Other current liabilities 179,400 Inventories 299,000 Notes payable to bank 119,600 Total current assets $849,160 Total current liabilities $490,360 $251,160 Long-term debt Common equity (45,448 Net fixed assets 346,840 454,480 Total assets $1,196,000 Total liabilities and equity $1,196,000 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,300,000 Cost of goods sold Materials Labor $1,035,000 483,000 92,000 61,000 Heat, light, and power Indirect labor Depreciation 1,886,000 Gross profit 414,000 Selling expenses 276,000 General and administrative expenses 69,000 Earnings before interest and taxes (EBIT) 1,000 Interest expense 22,604 ANO N 000 Earnings before taxes (EBT) Federal and state income taxes (40%) op op Net income op un N Earnings per share Price per share on December 10.00 a. Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.74x Quick 1.07x Days sales outstanding 28.92 days Inventory turnover 7.92x Total assets turnover Profit margin 1.15% ROA 2.45% ROE 6.52% ROIC 7.40% TIE 3.10x Debt/Total capital 45.83% M/B 4.00% P/E 18.45% EV/EBITDA 5.74% 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. INDUSTRY Profit margin 1.15% Total assets turnover 2.13x Equity multiplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Cost Analysis

Authors: Roger Hussey

1st Edition

160649239X, 9781606492390

More Books

Students also viewed these Accounting questions

Question

Always show respect for the other person or persons.

Answered: 1 week ago

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago