Ratio Analysis

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
  1. Calculate the indicated ratios for Barry Round your answers to two decimal places
    Ratio Barry Industry Average
    Current ______x 301x
    Quick _______x 202x
    Days sales outstandinga _______days 4230days
    Inventory turnover _______x 705x
    Total assets turnover _______x 182x
    Profit margin ______% 085%
    ROA ______% 154%
    ROE ______ % 290%
    ROIC _____ % 740%
    TIE _____x 310x
    Debt/Total capital ______ % 4850%

    aCalculation is based on a 365-day year

  2. Construct the Du Pont equation for both Barry and the industry Round your answers to two decimal places
    FIRM INDUSTRY
    Profit margin ____% 085%
    Total assets turnover _____ x 182x
    Equity multiplier

Solution:

Looking for help with your homework?
Grab a 30% Discount and Get your paper done!

30% OFF
Turnitin Report
Formatting
Title Page
Citation
Place an Order

Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -

What Makes Us Unique?

Outstanding Quality

TheStudyPool.com is an essay writing service that helps High-school, college, University, Master’s and PhD students from distinct regions globally. Over the years, we have generated a wide range of assignments, in almost all fields. This has enhanced our ability to deliver high quality papers and outstanding work to such extents that we have retained most of our customers.

Experienced Academic Writers

TheStudyPool.com has invested in a highly selective hiring process that is unnatural and distinct from other companies. Additionally, our reward techniques and approaches are structured in ways that motivate our writers to give high quality work on all orders.

Free revisions

Our customers can freely place orders on revision on instances where they feel that something ought to be modified after the paper has been completed. However, we highly discourage our customers from misusing this policy.

Timely delivery

At TheStudyPool.com, all papers, regardless of how URGENT, are completed within the deadline indicated by the client. At TheCoursehero.com, we encourage our writers to submit work ahead of the deadline indicated to give ample time for the client to go through the work.

Plagiarism-Free Papers

All our papers are completed from scratch with strict adherence to the instructions provided by the clients. Customers can request for a plagiarism report at their own convenience.

24/7 Customer Support

You can simply get in touch with our customer support team via the chat window on the Bottom right corner or via the email: support@thestudypool.com.

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Are you struggling with your academic work? Well, we are here to ensure that we complete the most daunting assignments/homework for you at affordable fee.

Essays

Custom Essay Writing Service

You can simply select the type of paper, which could be a research paper, essay, Coursework, Case study, among others. We understand that assignments and homework form an essential part of the learning curriculum. However, you might be held up at work, in family or other personal matters to an extent that you cannot complete a certain task yet it is mandatory for you to graduate. Simply click the place order button to get started.

Admissions

Admission Essay

Regardless of the institution you are joining, your admission essay form a major component. The admission essay is the initial thing that the admission board look at. Therefore, it is important to make a good first impression as this really counts. We are here to ensure that we generate an admission essay that will get you accepted and one which is completed on time.

Reviews

Editing and Paraphrasing

At TheStudyPool.com, we understand that you might have completed your homework paper, but at the same time, you might be looking for professional writers to polish your work in terms of grammar, paraphrasing and plagiarism.

Reviews

Urgent Papers

Are you experiencing the last minute rush? At TheStudyPool.com, we can complete a task in less than 4 hours. Simply click the place order button and enter the order instructions.

AllEscortAllEscort