a.Calculate the indecated ratios for Barry
b.Construct the DuPont equation 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 2011. How would that info affect the validity of your ratio analysis?
Balance Sheet:
Cash 77,500
Receivables 336,000
inventories 241,500
total current assets 655,000
net fixed assets 292,500
total assets 947,500
accounts payable 129000
notes payable 84000
other current liabilities 117000
total current liabilites 330000
long-term debt 256500
common equity 361000
total liabilities and equity 947500
Income Statement
Sales 1607500
Costs of goods sold 1392500
materials 717000
labor 453000
heat,light,power 68000
indirect labor 113000
depreciation 415000
gross profit 215000
selling expenses 115000
general and administrative expenses 30000
EBIT 70000
interest expense 245000
EBT 45500
federal and state income taxes(40%) 18200
net income 27300
Ratio and Industry average
currrent 2.0x
quick 1.3x
days sales outstanding 35 days
inventory turnover 6.7x
total assets turnover 3.0x
profit margin 1.2%
ROA 3.6%
ROW 9%
total debt/total assets 60%
(based on 365 days per year)