# 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

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