Question

Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, number of shares are shown in thousands too. Barry Computer Company: Balance Sheet as of December 31, 2019 (In Thousands) Cash $ 95,760 Accounts payable Receivables 340,480 Other current liabilities Inventories 297,920 Notes payable to bank Total current assets $ 734,160 Total current liabilities Long-term debt Net fixed assets 329,840 Common equity (48,944 shares) Total assets $ 1,064,000 Total liabilities and equity $ 106,400 85,120 74,480 $ 266,000 308,560 489,440 $ 1,064,000 Barry Computer Company: Income Statement for Year Ended December 31, 2019 (In Thousands) Sales $ 1,900,000 Cost of goods sold Materials $836,000 Labor 570,000 Heat, light, and power 57,000 Indirect labor 190,000 Depreciation 38,000 1,691,000 Gross profit $ 209,000 Selling expenses 95,000 General and administrative expenses 38,000

Answer 1

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| 0 = e ạ , 3 g W Q v B 05:53 ENG 01-02-2020 24 EF EG EH ED370 - X Vfx 2DXDYDZ EA EB ECEDEE 368 369 CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES 370 371 QUICK RATIO = (CURRENT ASSETS - INVENTORY)/CURRENT LIABILITIES 2019 2.76 (5734160/266000] 1.64 (=(734160-297920)/266000] 372 DAYS SALES OUSTANDING = 365 DAYS X ACCOUNTS RECEIVABLE/SALES 65.41 (=365*340480/1900000] 373 374 INVENTORY TURNOVER = SALES/INVENTORY 6.38 [=1900000/297920] TOTAL ASSETS TURNOVER = SALES/TOTAL ASSETS 1.79 [=1900000/1064000] 377 378 379 380 PROFIT MARGIN = NET INCOME/SALES 1.90% (=36172/1900000] ROA = NET INCOME/TOTAL ASSETS 3.40% (=36172/1064000] 382 ROE = NET INCOME/COMMON EQUITY 7.39% (=36172/489440] 385 6.53% (=76000*(1-0.25)/(74480+308560+489440)] ROIC = EBIT(1-t)/INVESTED CAPITAL INVESTED CAPITAL = NOTES PAYABLE + LONG TERM DEBT + COMMON EQUITY 386 387 388 389 TIE = EBIT/INTEREST EXPENSES 2.74 (=76000/27770) 390 43.90% [=(74480+308560)/(74480+308560+489440)] 391 DEBT/TOTAL CAPITAL (NOTES PAYABLE + LONG TERM DEBT)/(NOTES PAYABLE + LONG TERM DEBT + COMMON EQUITY) FIFO CASH BUDGET budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET du ... -

? 05:54 v ENG 01-02-202024 EF408 DX DY DZ EA EBEC ED EEEF EGEH 389 390 391 43.90% (=(74480+308560)/(74480+308560+489440)] DEBT/TOTAL CAPITAL (NOTES PAYABLE + LONG TERM DEBT)/(NOTES PAYABLE + LONG TERM DEBT + COMMON EQUITY) 392 M/B 1.40 [=(48944*14/489440) 393 394 395 MARKET TO BOOK RATIO MARKET VALUE / BOOK VALUE = (NO OF SHARES X PRICE)/EQUITY 396 P/E PRICE EARNINGS RATIO = MARKET PRICE/EPS = 18.94 [=14/0.739] 397 8.53 EV/EBITDA = ENTERPRISE VALUE / EBITDA [=((48944*14) +308560 + 74480 - 95760)/(76000 + 38000)] ENTERPRISE VALUE = MARKET VALUE OF SHARES + LONG TERM DEBT + NOTES PAYABLE - CASH EBITDA = EBIT + DEPRECIATION 398 399 400 401 402 403 b 404 405 406 407 FIRM A DUPONT PROFIT MARGIN TOTAL ASSETS TURNOVER EQUITY MULTIPLIER (ROE/ROA) 1.90% 1.79 2.17 [7.39/3.40] INDUSTRY 2.38% 1.54 2.17 [8.21/3.78] 408 ROE = AXBXC 7.39% 7.96% 409 410 411 412 FIFO CASH BUDGET budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET du... :