Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Data for Barry Computer Company and its industry averages follow.
a. Calculate the indicated ratios for Barry.
b. Construct the extended Du Pont 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 2002. 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, 2002 (In Thousands)
Cash
$ 77500
Accounts payable
$129000
Receivables
336000
Notes payable
84000
Inventories
241500
Other current liabilities
117000
Total current assets
$655000
Total current liabilities
$330000
Net fixed assets
292500
Long-term debt
256500
Total assets
$947500
Common equity
361000
Total liabilities and equity
Barry Computer Company: Income Statement for Year Ended December 31, 2002
(In Thousands)
Sales
$1,607,500
Cost of goods sold
1,392,500
Selling, general, and administrative expenses
145,000
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
Ratio Barry Industry Average
Current assets/current liabilities
2.0X
Days sales outstandinga
35 days
Sales/inventory
6.7X
Sales/fixed assets
12.1X
Sales/total assets
3.0X
Net income/sales
1.2%
Net income/total assets
3.6%
Net income/common equity
9.0%
Total debt/total assets
60.0%
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.
Briefly describe the major differences between a sole proprietorship and a corporation
Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month
What are the implied interest rates in Europe and the U.S.?
State pricing theory and no-arbitrage pricing theory
Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.
The Effect of Financial Leverage and working capital management
Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.
Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.
Time Value of Money project
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd