Data for Barry Computer Co. and Its Industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, the number of shares is shown in thousands too. Cash Receivables Inventories Total current assets Net fixed assets Total assets Barry Computer Company: Balance Sheet as of December 31, 2021 (In thousands) $144,050 Accounts payable Labor Heat, light, and power Indirect labor 475,365 417,745 $1,037,160 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (In thousands) Sales $2,150,000 Cost of goods sold Materials 403,340 $1,440,500 Gross profit Selling expenses General and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) Net Income Earnings per share Price per share on December 31, 2021 ROE ROIC TIE Total assets turnover Profit margin ROA Other current liabilities Notes payable to bank Total current liabilities Long-term debt Common equity (72,025 shares) Total liabilities and equity Profit margin Total assets turnover Equity multiplier a. Calculate the indicated ratios for Barry. Do not round Intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current Quick Days sales outstanding Inventory turnover days Debt/Total capital M/B P/E EV/EBITDA *Calculation is based on a 365-day year. $860,000 580,500 129,000 193,500 1,763,000 $ 387,000 193,500 21,500 86,000 $ 86,000 36,445 $ 49,555 12,389 $ 37,166 $ 0.5160 13.00 2.70x 1.62x 38 days 5.62x 1.68x 1.62% 2.72% 5.49% 7.10% 2.39x $ 187,265 129,645 72,025 $388,935 331,315 720,250 $1,440,500 35.30% 5.30 27.77 9.48 b. Construct the DuPont equation for both Barry and the industry. Do not round Intermediate calculations. Round your answers to two decimal places. FIRM INDUSTRY 1.62% 1.68x
Data for Barry Computer Co. and Its Industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, the number of shares is shown in thousands too. Cash Receivables Inventories Total current assets Net fixed assets Total assets Barry Computer Company: Balance Sheet as of December 31, 2021 (In thousands) $144,050 Accounts payable Labor Heat, light, and power Indirect labor 475,365 417,745 $1,037,160 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (In thousands) Sales $2,150,000 Cost of goods sold Materials 403,340 $1,440,500 Gross profit Selling expenses General and administrative expenses Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (25%) Net Income Earnings per share Price per share on December 31, 2021 ROE ROIC TIE Total assets turnover Profit margin ROA Other current liabilities Notes payable to bank Total current liabilities Long-term debt Common equity (72,025 shares) Total liabilities and equity Profit margin Total assets turnover Equity multiplier a. Calculate the indicated ratios for Barry. Do not round Intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current Quick Days sales outstanding Inventory turnover days Debt/Total capital M/B P/E EV/EBITDA *Calculation is based on a 365-day year. $860,000 580,500 129,000 193,500 1,763,000 $ 387,000 193,500 21,500 86,000 $ 86,000 36,445 $ 49,555 12,389 $ 37,166 $ 0.5160 13.00 2.70x 1.62x 38 days 5.62x 1.68x 1.62% 2.72% 5.49% 7.10% 2.39x $ 187,265 129,645 72,025 $388,935 331,315 720,250 $1,440,500 35.30% 5.30 27.77 9.48 b. Construct the DuPont equation for both Barry and the industry. Do not round Intermediate calculations. Round your answers to two decimal places. FIRM INDUSTRY 1.62% 1.68x
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands,
the number of shares is shown in thousands too.
Barry Computer Company:
Balance Sheet as of December 31, 2021 (in thousands)
Accounts payable
Other current liabilities
$ 144,050
475,365
417,745
$1,037,160
Notes payable to bank
Total current liabilities
Cash
Receivables
Inventories
Total current assets
Net fixed assets
Total assets
Sales
Cost of goods sold
Materials
Barry Computer Company:
Income Statement for Year Ended December 31, 2021 (in thousands)
$2,150,000
Labor
Heat, light, and power
Indirect labor
Gross profit
Selling expenses
General and administrative expenses
403,340
$1,440,500
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Earnings before taxes (EBT)
Federal and state income taxes (25%)
Net Income
Earnings per share
Price per share on December 31, 2021
Total assets turnover
Profit margin
ROA
ROE
ROIC
TIE
Debt/Total capital
M/B
P/E
Long-term debt
Common equity (72,025 shares)
Total llabilities and equity
EV/EBITDA
*Calculation is based on a 365-day year.
Profit margin
Total assets turnover
Equity multiplier
days
X
%
%
%
%
a. Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Ratio
Barry
Industry Average
Current
Quick
Days sales outstanding
Inventory turnover
%
$860,000
580,500
129,000
193,500 1,763,000
%
$ 387,000
193,500
21,500
86,000
X
X
$
$
$
$
$
86,000
36,445
49,555
12,389
37,166
0.5160
13.00
2.70x
1.62x
38 days
5.62x
1.68x
1.62%
2.72%
5.49%
7.10%
2.39x
35.30%
5.30
27.77
9.48
b. Construct the DuPont equation for both Barry and the industry. Do not round Intermediate calculations. Round your answers to two decimal places.
FIRM
INDUSTRY
1.62%
1.68x
$ 187,265
129,645
72,025
X
$388,935
331,315
720,250
$1,440,500
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