8. Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: 1. Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? What is the profit margin for 2014? % (Round to two decimal places.) What is the profit margin for 2013? % (Round to two decimal places.) What is the return on assets for 2014? % (Round to two decimal places.) What is the return on assets for 2013? % (Round to two decimal places.) What is the return on equity for 2014? % (Round to two decimal places.) What is the return on equity for 2013? % (Round to two decimal places.) Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? (Select the best response.) O A. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 43.02% for 2014 OB. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 43.02% for 2013 C. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 43.02% for 2013 OD. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 43.02% for 2014 1: Data Table Ittp://alitemprod.panioncmg.com/api/vi/print/en-us/finance 12 GA GA Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue 14,147,252 $ 13,566,661 Cost of goods sold -8,448,758$ -8,131,030 Selling, general, and administrative expenses $ $ -997,497 $ -980,055 Depreciation $ -1,498,598 $ -1,471,558 EBIT $ 3,202,399 $ 2,984,018 Interest expense $ -376,271 $ -355,847 Taxes $ -1,073,929 $ -998,705 Net income $ 1,752,199 $ 1,629,466 $ $ $ $ GA 2013 A Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 LIABILITIES 2014 2013 Current assets Current liabilities Cash 191,760 $ 186,669 Accounts payable $ 1,546, 112$ 1,455,939 Investments 181,824 $ 120,553 Short-term debt $ 311,244 $ 332,438 Total current Accounts receivables 668,186 $ 631,880 liabilities 1,857,356 $ 1,788,377 Inventory S 588,911 $ 564,179 Long-term liabilities Total current assets $ 1,630,681 $ 1,503,281 Debt $ 7,285,283 $ 6,604,971 Long-term assets Other liabilities S 1,462,379 $ 1,345,320 Investments $ 3,054,740 $ 2,827,471 Total liabilities S 10,605,018 S 9,738,668 Plant, property, and equipment $ 8,496,804 $ 8,480,645 OWNERS' EQUITY Goodwill 347,233 $ 347,081 Common stock S 1,457,695 $ 1,453,329 Intangible assets $ 1,157,545 $ 956,803 Retained earnings $ 2,624,290 S 2,923,284 Total owners' equitys 4,081,985 $ 4,376,613 TOTAL LIABILITIES AND OWNERS I TOTAL ASSETS S 14.687.0031 $ 14.115.281 EQUITY $ 14.687.0031 $ 14.115.281 $
