Problem 4-23 Ratio Analysis Data for Barry Computer Co. and its


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Problem 4-23 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 $142,290 Accounts payable $158,100 Receivables 632,400 Other current liabilities 142,290 Inventories 379,440 Notes payable 79,050 Total current assets $1,154,130 Total current liabilities $379,440 Long-term debt $316,200 Net fixed assets 426,870 Common equity 885,360 Total assets $1,581,000 Total liabilities and equity $1,581,000 Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands) Sales $2,550,000 Cost of goods sold Materials $1,045,500 Labor 739,500 Heat, light, and power 127,500 Indirect labor 229,500 Depreciation 127,500 $2,269,500 Gross profit $280,500 Selling expenses 127,500 General and administrative expenses 76,500 Earnings before interest and taxes (EBIT) $76,500 Interest expense 37,944 Earnings before taxes (EBT) 38,556 Federal and state income taxes (40%) 15,422 Net income $23,134 Calculate the indicated ratios for Barry. Round your answers to two decimal places. Ratio Barry Industry Average Current ______x 3.01x Quick _______x 2.02x Days sales outstanding a _______days 42.30days Inventory turnover _______x 7.05x Total assets turnover _______x 1.82x Profit margin ______% 0.85% ROA ______% 1.54% ROE ______ % 2.90% ROIC _____ % 7.40% TIE _____x 3.10x Debt/Total capital ______ % 48.50% a Calculation is based on a 365-day year. Construct the Du Pont equation for both Barry and the industry. Round your answers to two decimal places. FIRM INDUSTRY Profit margin ____% 0.85% Total assets turnover _____ x 1.82x Equity multiplier _______ wherring
posted a question · Feb 08, 2016 at 6:16pm

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