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

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