Data for Barry Computer Company and its industry averages follow: Calculate the indicated ratios for Barry. Construct and extend DuPont evaluation…

Data for Barry Computer Company and its industry averages follow:A. Calculate the indicated ratios for Barry.B. Construct and extend DuPont evaluation for both Barry and the industry.C. Outline Barry’s strengths and weaknesses as revealed by your analysis.D. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2004. How would that information affect the validity of your ratio analysis? (hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.)Barry Computer Company: Balance Sheet as of December 31, 2003 (In Thousands)Cash $77,500 Accounts payable $129,000Receivables 336,000 Notes payable 84,000Inventories 241,500 Other current liabilities 117,000Total Cash Assets 655,000 Total current liabilities 330,000Net fixed assets 292,500 Long-term debt 256,500Common equity 361,000Total assets $947,500 Total liabilities and equity 947,500Barry Computer Company Income Statement for year ended December 31, 2004 (in Thousands)Sales $1,607,500Costs of goods sold 1,392,500Selling, general, and administrative expenses 145,000Earnings before interest and taxes (EBIT) $70,000Interest expense 24,500Earning before taxes (EBT) $45,500Federal and state incomes taxes (40%) 18,200Net Income $27,300A. Calculate the indicated ratios for Barry.B. Construct and extend DuPont evaluation for both Barry and the industry.C. Outline Barry’s strengths and weaknesses as revealed by your analysis.D. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2004. How would that information affect the validity of your ratio analysis? (hint: Think about averages and the effects of rapid growth on ratios if averages are not used. No calculations are needed.)

"Get 15% discount on your first 3 orders with us"
Use the following coupon
FIRST15

Order Now