FINANCIAL HEALTH ASSESSMENT: BARRY COMPUTER COMPANY—PART 2
Note: In Week 4, you submitted Part 1 of the Module 2 Assignment. You will complete and submit Part 2 this week.
As a reminder, you will continue to act as a consultant hired by the operations director of the Barry Computer Company to do a financial analysis and comparison to the industry. You will conduct a financial ratio analysis to gain a good understanding of the company’s financial performance and will then write up an evaluation of the organization’s financial health, as well as your recommendations for how specific ratios can be improved within the next 3–5 years.
In your report, be sure to include relevant citations from the Learning Resources, the Walden Library, and/or other appropriate academic sources to support your work.
RESOURCESBe sure to review the Learning Resources before completing this activity.
Click the weekly resources link to access the resources. 
WEEKLY RESOURCES
To prepare for this Assignment:
Return to your Module 2 Assignment Part 2 Template to complete Part 2 of your financial health assessment report. 
BY DAY 7
Submit your assessment of a company’s financial performance, to include the following:
PART 2: RECOMMENDATIONS (2–3 PAGES)
For each ratio that negatively falls outside the industry standards, develop at least one appropriate recommendation for the Barry Computer Company to improve financial performance over time (over the next 3–5 years to meet industry standards).
Assess limitations of the exclusive use of ratio analysis for evaluating financial performance. In your assessment, describe any qualitative factors that could also complement the ratio analysis and play an important role in improving financial performance.

Refer to the Week 5 Assignment Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.
Module 2 Assignment:
Financial Health Assessment: Barry Computer Company
Report prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
WMBA 6070: Managerial Finance
1
Part 1: Financial Information
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2
Part 2: Recommendations
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[Heading]
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References
[Please delete this note before submitting your Assignment. For more information about
formatting your reference list, please visit the following site:
https://academicguides.waldenu.edu/writingcenter/apa/references.]
Include appropriately formatted references to support your Assignment. Refer to the
Assignment guidelines for further information on the requirements.
4
Ratio
Current
Quick
Days Sales Outstanding
Inventory Turnover
Total Assets Turnover
Profit Margin
ROA
ROE
ROIC
TIE
Debt/Total Capital
M/B
P/E
EV/EBITDA
Current Assets/Current Liabilities
Current Assets – Inventories/Current Liabilities
Receivables/(Annual Sales/365)
Sales/Inventories
Sales/Total Assets
Net Income/Sales
Net Income/Total Assets
Net Income/Common Equity
EBIT(1-T)Total Invested Capital
EBIT/Interest Charges
Total Debt/(Total Debt + Equity)
Market Price/Book Value
Price per Share/Earnings per Share
(Market Value of Equity + Market Value of Total Debt +
Market Value of Other Financial Claims – Cash and
Equivalents)/EBITDA
Balance Sheet
Cash
Receivables
Inventories
Total Current Assets
Enter figures below
$0
$0
$0
$0
Net Fixed Assets
Total Assets
$0
$0
Accounts Payable
Other Current Liabilities
Notes Payable to Bank
Total Current Liabilities
$0
$0
$0
$0
Long-Term Debt
Common Equity (36,100 shares)
Total Liabilities and Equity
$0
$0
$0
Income Statement
Sales
Cost of Goods Sold
Materials
Labor
Heat, light, and power
Indirect Labor
$0
0
$0
$0
$0
$0
Depreciation
$0
Gross Profit
Selling Expenses
Gen. Admin Expenses
EBIT
Interest Expense
EBT
Fed and State Income Taxes (25%)
Net Income
$0
$0
$0
$0
$0
$0
$0
$0
Earnings per Share
Price per Share
$0.00000
$0.00
Book Value (Common Equity/Shares)
$0.00
Barry Computers
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Shares Outstanding
36,100
Industry Averages
2.0X
1.3X
35 days
6.7X
3.0X
1.2%
3.6%
9.0%
7.5%
3.0X
47.0%
4X
17.86X
9.00X
Tax Burden
25%