Ratio Analysis Data for Barry Computer Co. and its industry averages follow. Bar
ID: 2820547 • Letter: R
Question
Ratio Analysis
Data for Barry Computer Co. and its industry averages follow.
Barry Computer Company:
Balance Sheet as of December 31, 2018 (In Thousands)
Cash
$77,500
Accounts payable
$129,000
Receivables
336,000
Other current liabilities
117,000
Inventories
241,500
Notes payable
84,000
Total current assets
$655,000
Total current liabilities
$330,000
Long-term debt
$256,500
Net fixed assets
292,500
Common equity
361,000
Total assets
$947,500
Total liabilities and equity
$648,000
Barry Computer Company:
Income Statement for Year Ended December 31, 2015(In Thousands)
Sales
$1,607,500
Cost of goods sold
Materials
$717000
Labor
453,000
Heat, light, and power
68,000
Indirect labor
113,000
Depreciation
41,500
$1,39,500
Gross profit
$215,000
Selling expenses
115,000
General and administrative expenses
30,000
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
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio
Barry
Industry Average
Current
x
2.0x
Quick
x
1.3x
Days sales outstandinga
days
35days
Inventory turnover
x
6.7x
Total assets turnover
x
3.0x
Profit margin
%
1.2%
ROA
%
3.6%
ROE
%
9.0%
ROIC
%
7.5%
TIE
x
3.0x
Debt/Total capital
M/B
P/E
EV/EBITDA
%
x
x
x
47.0%
4.22
17.86
9.14
Barry Computer Company:
Balance Sheet as of December 31, 2018 (In Thousands)
Cash
$77,500
Accounts payable
$129,000
Receivables
336,000
Other current liabilities
117,000
Inventories
241,500
Notes payable
84,000
Total current assets
$655,000
Total current liabilities
$330,000
Long-term debt
$256,500
Net fixed assets
292,500
Common equity
361,000
Total assets
$947,500
Total liabilities and equity
$648,000
Explanation / Answer
Please find the below link for detailed excel file.
https://ufile.io/yqzgt
Days salesoutstanging = (365 * receivables )/ sales 76.29238 Inventory turnover= COGS / Inventory 2.968944 Total assets turnover = sales / assets 1.69657 Profit margin = net profit / sales 1.698289 ROA = Net income/ assets 2.881266 ROE = net income / equity 7.562327 ROIC = EBIT(1-t) / Invested capital 11.63435 TIE = EBIT / Interest expense 2.857143 Debt to total capital ratio = longterm debt /(long term debt + equity) 41.53846Related Questions
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