Question

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 Receivables Inventories $52,650 379,080 221,130 $652,860 Accounts payable Other current liabilities Notes payable $136,890 136,890 126,360 $400,140 Total current liabilities Long-term debt Common equity Total liabilities and equity Total current assets $294,840 358,020 $1,053,000 Net fixed assets 400,140 Total assets $1,053,000 Barry Computer Company Income Statement for Year Ended December 31, 2014 (In Thousands) Sales $1,950,000 Cost of goods sold Materials Labor Heat, light, and power Indirect labor Depreciation $955,500 468,000 117,000 78,000 8,500 $1,677,000Gross profit Selling expenses General and administrative expenses $273,000 175,500 39,000 $58,500 26,536 31,964 12,786 $19,178 Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income a. Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current 1.65x Quick 1.09x Days sales outstandinga days 33.79days Inventory turnover 9.45x Total assets turnover 2.16x Profit margin 0.94% ROA 2.02% ROE 5.70% ROIC 7.30%TIE 2.90x Debt/Total capital 46.00% Calculation is based on a 365-day year. b. Construct the Du Pont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin 0.94% Total assets turnover 2.16x Equity multiplier

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Soution . rren Curren Uabihes 串652,860 (Asnan) $ oo, 140 ( fAi ven) - 163 5 400,140 CAsgen) 431,730 078 Tohal Crallt saho = $Total Aneお 事丨350,000 (As =1.85/ ,053,000(/4s91, xIDo Sales $3196y (Asven) xioO $ 9o,000 (As n) },63 g = Net Inuwme total fee $19,178 ×100 O53,000 = 1.821%Share holdab e4ulq - $19,1 18 CAs aiven) $ 358,020 (As^lven) 5 356 % eauui $56,Soo (s van)xl00 358,020 ( Aさ7:ver) 16.339 % キ9(xi et Total caielDebt $ 400,140 + $ 294,840) ×100 串358,020 S8 2.0 ndus Ae 1.65x 09x Raho .63 x I 08X 70.96 Da )Current dle 1(b) Du Pont eawaton for both bay ard Drdwshy Firm das Induu 0.94 % 816 x Total ep 185 x mover N N) marin Ratho = 1.64 × 1.85

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