Q13. Data for Barry Computer Company and its industry averages is as follows:

Q13. Data for Barry Computer Company and its industry averages is as follows:

Balance Sheet
Assets	($ 000)	Liabilities & Equity	($ 000)
Cash	77,500	Accounts payable	129,000
Accounts receivable	336,000	Notes payable	84,000
Inventory	241,500	Other current liabilities	117,000
Total current assets	655,000	Total current liabilities	330,000
Fixed assets	292,500	Tong term debt	256,500
		Common equity	361,000
Total Assets	947,500	Total Liabilities & Equity	947,500

Income Statement
	($ 000)	($ 000)
Sales		1,607.5
Cost of goods sold
Materials	717
Labour	453
Heat, light, and power	68
Indirect labour	113
depreciation	41.5	1,392.5
Gross profit		215
Selling expense		115
Genral and admin expenses		30
EBIT		70
Interest		24.5
EBT		45.5
Tax (40% of EBT)		18.2
Net profit		27.3

RATIO	BARRY	INDUSTRY AVERAGE
Current ratio		2.0x
Days Sale Outstanding / average collection period		35 days
Sales /inventory		6.7x
Sales / total assets		3.0x
Net Income / Sales		1.2%
Net Income / total assets		3.6%
Net Income / common equity		9.0%
Total Debt / Total Assets		60.0%

*Calculation is based on a 360 day year.

Calculate the industry ratios for barry?

Q14. Here is data for allied food products for the year 2006.

Allied Food Products
Balance Sheet
For the year ended on 31 December 2006.
Assets	(Rs. In Millions)	Liability & Equity	(Rs. In Millions)
Cash and Marketable Securities	10	Total Current Liability	310
Accounts Receivable	375	Long Term Bonds	754
inventories	615	Total Debt	1,064
Total Current Assets	1,000
		Common Stock	170
Plant and Equipment	1,000	Retained Earnings	766
		Total Common Equity	896
	2,000		2,000

· Sales for the year 2006 were Rs. 3 Billion and they are expected to grow by 10% by 2007.

· long term debt and common stocks will remain content in 2007.

· The difference in the balance sheet belongs to retained earnings.

Prepare a projected balance sheet for Allied Food Products for the year 2007 using percentage of sales method?

Q15. Here is data for allied food products for the year 2006.

Allied Food Products
Income Statement
For the year ended on 31 December 2006.
	(Rs. In Millions)
Sales	3,000
Cost except depreciation	2,616
Depreciation	100
Total operating cost	2716
EBIT	284
Interest	88
EBT	196
Tax (40% of EBT)	78
Net Income Available for Common shareholders	118
Dividend (50 % of net profit)	59
Addition to retained earnings	59

· Sales for the year 2006 were Rs. 3 Billion and they are expected to grow by 10% by 2007.

· Depreciation and interest will remain content in 2007.

Prepare a projected income statement for Allied Food Products for the year 2007 using percentage of sales method?