Homework Help is Here – Start Your Trial Now!
Business
Finance
Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) $ 77,500 Accounts payable Cash $129,000 Receivables 336,000 Other current liabilities 117,000 Inventories 241,500 Notes payable to bank 84,000 Total current assets $ 655,000 Total current liabilities $330,000 Long-term debt 256,500 Net fixed assets Common equity (36,100 shares) Total liabilities and equity 292,500 361,000 Total assets $ 947,500 $947,500 December 31, 2018 (In Thousands) Sales $1,607,500 Cost of goods sold Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 24,500 Earnings before taxes (EBT) 45,500 Federal and state income taxes (40%) 18,200 Net income 27,300 Earmings per share 0.75623 Price per share on December 31, 2018 $ 12.00 Ratio Barry Industry Average Current 2.0x Quick 1.3x Days sales outstanding Inventory turnover 35 days 6.7x Total assets turnover 3.0x Profit margin 1.2% ROA 3.6% ROE 9.0% ROIC 7.5% TIE 3.0х Debt/Total capital 47.0% M/B 4.22 P/E 17.86 EV/EBITDA 9.14 Calculation is based on a 365-day year.

Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) $ 77,500 Accounts payable Cash $129,000 Receivables 336,000 Other current liabilities 117,000 Inventories 241,500 Notes payable to bank 84,000 Total current assets $ 655,000 Total current liabilities $330,000 Long-term debt 256,500 Net fixed assets Common equity (36,100 shares) Total liabilities and equity 292,500 361,000 Total assets $ 947,500 $947,500 December 31, 2018 (In Thousands) Sales $1,607,500 Cost of goods sold Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 24,500 Earnings before taxes (EBT) 45,500 Federal and state income taxes (40%) 18,200 Net income 27,300 Earmings per share 0.75623 Price per share on December 31, 2018 $ 12.00 Ratio Barry Industry Average Current 2.0x Quick 1.3x Days sales outstanding Inventory turnover 35 days 6.7x Total assets turnover 3.0x Profit margin 1.2% ROA 3.6% ROE 9.0% ROIC 7.5% TIE 3.0х Debt/Total capital 47.0% M/B 4.22 P/E 17.86 EV/EBITDA 9.14 Calculation is based on a 365-day year.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
See similar textbooks
icon
Related questions
Question
100%

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.
a. Calculate the indicated ratios for Barry.
b. Construct the DuPont equation for both Barry and the industry.
c. Outline Barry’s strengths and weaknesses as revealed by your analysis.
d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and
common equity during 2018. How would that information affect the validity of your
ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios if
averages are not used. No calculations are needed.)

Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) $ 77,500 Accounts payable Cash $129,000 Receivables 336,000 Other current liabilities 117,000 Inventories 241,500 Notes payable to bank 84,000 Total current assets $ 655,000 Total current liabilities $330,000 Long-term debt 256,500 Net fixed assets Common equity (36,100 shares) Total liabilities and equity 292,500 361,000 Total assets $ 947,500 $947,500 December 31, 2018 (In Thousands) Sales $1,607,500 Cost of goods sold Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 24,500 Earnings before taxes (EBT) 45,500 Federal and state income taxes (40%) 18,200 Net income 27,300 Earmings per share 0.75623 Price per share on December 31, 2018 $ 12.00 Ratio Barry Industry Average Current 2.0x Quick 1.3x Days sales outstanding Inventory turnover 35 days 6.7x Total assets turnover 3.0x Profit margin 1.2% ROA 3.6% ROE 9.0% ROIC 7.5% TIE 3.0х Debt/Total capital 47.0% M/B 4.22 P/E 17.86 EV/EBITDA 9.14 Calculation is based on a 365-day year.
Transcribed Image Text:Barry Computer Company: Balance Sheet as of December 31, 2018 (In Thousands) $ 77,500 Accounts payable Cash $129,000 Receivables 336,000 Other current liabilities 117,000 Inventories 241,500 Notes payable to bank 84,000 Total current assets $ 655,000 Total current liabilities $330,000 Long-term debt 256,500 Net fixed assets Common equity (36,100 shares) Total liabilities and equity 292,500 361,000 Total assets $ 947,500 $947,500 December 31, 2018 (In Thousands) Sales $1,607,500 Cost of goods sold Materials $717,000 Labor 453,000 Heat, light, and power 68,000 Indirect labor 113,000 Depreciation 41,500 1,392,500 Gross profit $ 215,000 Selling expenses 115,000 General and administrative expenses 30,000 Earnings before interest and taxes (EBIT) 70,000 Interest expense 24,500 Earnings before taxes (EBT) 45,500 Federal and state income taxes (40%) 18,200 Net income 27,300 Earmings per share 0.75623 Price per share on December 31, 2018 $ 12.00 Ratio Barry Industry Average Current 2.0x Quick 1.3x Days sales outstanding Inventory turnover 35 days 6.7x Total assets turnover 3.0x Profit margin 1.2% ROA 3.6% ROE 9.0% ROIC 7.5% TIE 3.0х Debt/Total capital 47.0% M/B 4.22 P/E 17.86 EV/EBITDA 9.14 Calculation is based on a 365-day year.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

What is the market price book value  with industry averages 4×

 

Solution
Bartleby Expert
SEE SOLUTION
Follow-up Question

What is the Book value common equity shares 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS