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Calculate the indicated ratios for barry

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Reference no: EM131800828

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

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

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

Calculation is based on a 365-day year.

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

Ratio Barry Industry Average
Current   ______x 3.01x
Quick  _______x 2.02x
Days sales outstandinga  _______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%

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

_______

  

Reference no: EM131800828

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