Ratio Analysis

Problem 4-23
Ratio Analysis

Data for Barry Computer Co and its industry averages follow

Don't use plagiarized sources. Get Your Custom Essay on
Ratio Analysis
Just from $13/Page
Order Essay
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

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

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.