Question

Ratio Analysis Data for Barry Computer Co. and its industry averages follow. Barry Computer Company: Balance...

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

Homework Answers

Answer #2

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) 41.53846
answered by: anonymous
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