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) Cash $ 95,400 Accounts payable $ 209,880 Receivables 744,120 Other current liabilities 152,640 Inventories 496,080 Notes payable to bank 152,640 Total current assets $ 1,335,600 Total current liabilities $ 515,160 Long-term debt 496,080 Net fixed assets 572,400 Common equity (89,676 shares) 896,760 Total assets $ 1,908,000 Total liabilities and equity $ 1,908,000 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $ 2,650,000 Cost of goods sold Materials $1,113,000 Labor 795,000 Heat, light, and power 132,500 Indirect labor 106,000 2,146,500 Gross profit $ 503,500 Selling expenses 238,500 General and administrative expenses 26,500 Depreciation 106,000 Earnings before interest and taxes (EBIT) $ 132,500 Interest expense 54,569 Earnings before taxes (EBT) $ 77,931 Federal and state income taxes (25%) 19,483 Net income $ 58,448 Earnings per share $ 0.6518 Price per share on December 31, 2021 $ 14.00 Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current × 2.62 × Quick × 1.58 × Days sales outstandinga days 48 days Inventory turnover × 5.60 × Total assets turnover × 1.56 × Profit margin % 2.06 % ROA % 3.22 % ROE % 6.93 % ROIC % 7.70 % TIE × 2.53 × Debt/Total capital % 41.38 % M/B 3.40 P/E 24.36 EV/EBITDA 10.04 aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. FIRM INDUSTRY Profit margin % 2.06% Total assets turnover × 1.56× Equity multiplier × ×
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) Cash $ 95,400 Accounts payable $ 209,880 Receivables 744,120 Other current liabilities 152,640 Inventories 496,080 Notes payable to bank 152,640 Total current assets $ 1,335,600 Total current liabilities $ 515,160 Long-term debt 496,080 Net fixed assets 572,400 Common equity (89,676 shares) 896,760 Total assets $ 1,908,000 Total liabilities and equity $ 1,908,000 Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) Sales $ 2,650,000 Cost of goods sold Materials $1,113,000 Labor 795,000 Heat, light, and power 132,500 Indirect labor 106,000 2,146,500 Gross profit $ 503,500 Selling expenses 238,500 General and administrative expenses 26,500 Depreciation 106,000 Earnings before interest and taxes (EBIT) $ 132,500 Interest expense 54,569 Earnings before taxes (EBT) $ 77,931 Federal and state income taxes (25%) 19,483 Net income $ 58,448 Earnings per share $ 0.6518 Price per share on December 31, 2021 $ 14.00 Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places. Ratio Barry Industry Average Current × 2.62 × Quick × 1.58 × Days sales outstandinga days 48 days Inventory turnover × 5.60 × Total assets turnover × 1.56 × Profit margin % 2.06 % ROA % 3.22 % ROE % 6.93 % ROIC % 7.70 % TIE × 2.53 × Debt/Total capital % 41.38 % M/B 3.40 P/E 24.36 EV/EBITDA 10.04 aCalculation is based on a 365-day year. Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places. FIRM INDUSTRY Profit margin % 2.06% Total assets turnover × 1.56× Equity multiplier × ×
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
Section: Chapter Questions
Problem 1PS
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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) | ||||||
| Cash | $ | 95,400 | Accounts payable | $ | 209,880 | |
| Receivables | 744,120 | Other current liabilities | 152,640 | |||
| Inventories | 496,080 | Notes payable to bank | 152,640 | |||
| Total current assets | $ | 1,335,600 | Total current liabilities | $ | 515,160 | |
| Long-term debt | 496,080 | |||||
| Net fixed assets | 572,400 | Common equity (89,676 shares) | 896,760 | |||
| Total assets | $ | 1,908,000 | Total liabilities and equity | $ | 1,908,000 |
| Barry Computer Company: Income Statement for Year Ended December 31, 2021 (in thousands) |
||||
| Sales | $ | 2,650,000 | ||
| Cost of goods sold | ||||
| Materials | $1,113,000 | |||
| Labor | 795,000 | |||
| Heat, light, and power | 132,500 | |||
| Indirect labor | 106,000 | 2,146,500 |
| Gross profit | $ | 503,500 | |||
| Selling expenses | 238,500 | ||||
| General and administrative expenses | 26,500 | ||||
| Depreciation | 106,000 | ||||
| Earnings before interest and taxes (EBIT) | $ | 132,500 | |||
| Interest expense | 54,569 | ||||
| Earnings before taxes (EBT) | $ | 77,931 | |||
| Federal and state income taxes (25%) | 19,483 | ||||
| Net income | $ | 58,448 | |||
| Earnings per share | $ | 0.6518 | |||
| Price per share on December 31, 2021 | $ | 14.00 |
- Calculate the indicated ratios for Barry. Do not round intermediate calculations. Round your answers to two decimal places.
Ratio Barry Industry Average Current × 2.62 × Quick × 1.58 × Days sales outstandinga days 48 days Inventory turnover × 5.60 × Total assets turnover × 1.56 × Profit margin % 2.06 % ROA % 3.22 % ROE % 6.93 % ROIC % 7.70 % TIE × 2.53 × Debt/Total capital % 41.38 % M/B 3.40 P/E 24.36 EV/EBITDA 10.04
aCalculation is based on a 365-day year. - Construct the DuPont equation for both Barry and the industry. Do not round intermediate calculations. Round your answers to two decimal places.
FIRM INDUSTRY Profit margin % 2.06% Total assets turnover × 1.56× Equity multiplier × ×
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