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, 2018 (In Thousands) Cash $224,250 Accounts payable $207,000 Receivables 621,000 Other current liabilities 207,000 Inventories 448,500 Notes payable to bank 207,000 Total current assets $1,293,750 Total current liabilities $621,000 Long-term debt $345,000 Net fixed assets 431,250 Common equity (75,900 shares) 759,000 Total assets $1,725,000 Total liabilities and equity $1,725,000 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,300,000 Cost of goods sold Materials $1,035,000 Labor 552,000 Heat, light, and power 161,000 Indirect labor 207,000 Depreciation 46,000 2,001,000 Gross profit $ 299,000 Selling expenses 115,000 General and administrative expenses $ 69,000 Earnings before interest and taxes (EBIT) $ 115,000 Interest expense 27,600 Earnings before taxes (EBT) $ 87,400 Federal and state income taxes (40%) 34,960 Net income $ 52,440 Earnings per share $ 0.69091 Price per share on December 31, 2018 $ 14.00 Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current x 2.05x Quick x 1.39x Days sales outstandinga days 46.93 days Inventory turnover x 5.49x Total assets turnover x 1.47x Profit margin % 2.17% ROA % 3.20% ROE % 7.35% ROIC % 7.10% TIE x 4.27x Debt/Total capital % 43.61% M/B % 4.40% P/E % 22.65% EV/EBITDA % 10.82% aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin % 2.17% Total assets turnover x 1.47x Equity multiplier x x

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, 2018 (In Thousands) Cash $224,250 Accounts payable $207,000 Receivables 621,000 Other current liabilities 207,000 Inventories 448,500 Notes payable to bank 207,000 Total current assets $1,293,750 Total current liabilities $621,000 Long-term debt $345,000 Net fixed assets 431,250 Common equity (75,900 shares) 759,000 Total assets $1,725,000 Total liabilities and equity $1,725,000 Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands) Sales $2,300,000 Cost of goods sold Materials $1,035,000 Labor 552,000 Heat, light, and power 161,000 Indirect labor 207,000 Depreciation 46,000 2,001,000 Gross profit $ 299,000 Selling expenses 115,000 General and administrative expenses $ 69,000 Earnings before interest and taxes (EBIT) $ 115,000 Interest expense 27,600 Earnings before taxes (EBT) $ 87,400 Federal and state income taxes (40%) 34,960 Net income $ 52,440 Earnings per share $ 0.69091 Price per share on December 31, 2018 $ 14.00 Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current x 2.05x Quick x 1.39x Days sales outstandinga days 46.93 days Inventory turnover x 5.49x Total assets turnover x 1.47x Profit margin % 2.17% ROA % 3.20% ROE % 7.35% ROIC % 7.10% TIE x 4.27x Debt/Total capital % 43.61% M/B % 4.40% P/E % 22.65% EV/EBITDA % 10.82% aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin % 2.17% Total assets turnover x 1.47x Equity multiplier x x

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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Barry Computer Company:
Balance Sheet as of December 31, 2018 (In Thousands)

Cash	$224,250	Accounts payable	$207,000
Receivables	621,000	Other current liabilities	207,000
Inventories	448,500	Notes payable to bank	207,000
Total current assets	$1,293,750	Total current liabilities	$621,000
		Long-term debt	$345,000
Net fixed assets	431,250	Common equity (75,900 shares)	759,000
Total assets	$1,725,000	Total liabilities and equity	$1,725,000

Barry Computer Company: Income Statement for Year Ended December 31, 2018 (In Thousands)

Sales		$2,300,000
Cost of goods sold
Materials	$1,035,000
Labor	552,000
Heat, light, and power	161,000
Indirect labor	207,000
Depreciation	46,000	2,001,000

Gross profit	$	299,000
Selling expenses		115,000
General and administrative expenses	$	69,000
Earnings before interest and taxes (EBIT)	$	115,000
Interest expense		27,600
Earnings before taxes (EBT)	$	87,400
Federal and state income taxes (40%)		34,960
Net income	$	52,440
Earnings per share	$	0.69091
Price per share on December 31, 2018	$	14.00

Calculate the indicated ratios for Barry. Round your answers to two decimal places.

Ratio	Barry	Industry Average
Current	x	2.05x
Quick	x	1.39x
Days sales outstanding^a	days	46.93 days
Inventory turnover	x	5.49x
Total assets turnover	x	1.47x
Profit margin	%	2.17%
ROA	%	3.20%
ROE	%	7.35%
ROIC	%	7.10%
TIE	x	4.27x
Debt/Total capital	%	43.61%
M/B	%	4.40%
P/E	%	22.65%
EV/EBITDA	%	10.82%

^aCalculation is based on a 365-day year.

Construct the DuPont equation for both Barry and the industry. Round your answers to two decimal places.

FIRM INDUSTRY

Profit margin % 2.17%

Total assets turnover x 1.47x

Equity multiplier x x

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	FIRM	INDUSTRY
Profit margin	%	2.17%
Total assets turnover	x	1.47x
Equity multiplier	x	x