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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Ratio Analysis
Data for Barry Computer Co. and its industry averages follow.
Barry Computer Company: | ||||
Balance Sheet as of December 31, 2014 (In Thousands) | ||||
 | ||||
Cash | $51,840 | Â | Accounts payable | $77,760 |
Receivables | 181,440 | Â | Other current liabilities | 58,320 |
Inventories | 155,520 | Â | Notes payable | 51,840 |
   Total current assets | $388,800 |  |    Total current liabilities | $187,920 |
 |  |  | Long-term debt | $142,560 |
Net fixed assets | 259,200 | Â | Common equity | 317,520 |
Total assets | $648,000 | Â | Total liabilities and equity | $648,000 |
Barry Computer Company: Income Statement for Year Ended December 31, 2014 (In Thousands) |
|||
 | |||
Sales | Â | Â | $1,200,000 |
Cost of goods sold | Â | Â | Â |
   Materials | $564,000 |  |  |
   Labor | 252,000 |  |  |
   Heat, light, and power | 60,000 |  |  |
   Indirect labor | 120,000 |  |  |
   Depreciation | 48,000 |  | $1,044,000 |
Gross profit | Â | $156,000 |
Selling expenses | Â | 108,000 |
General and administrative expenses | Â | 24,000 |
   Earnings before interest and taxes (EBIT) |  | $24,000 |
Interest expense | Â | 11,405 |
   Earnings before taxes (EBT) |  | 12,595 |
Federal and state income taxes (40%) | Â | 5,038 |
Net income | Â | $7,557 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
Ratio | Barry | Industry Average |
 |  |  |
Debt/Total capital?? | % | 45.00% |
aCalculation is based on a 365-day year.
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