ASSETS 2014 2013 Current assets Cash Investments Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 2014 2013 LIABILITIES Current liabilities 190,586 $ 186,570 Accounts payable 180,231 $ 121,878 Short-term debt 668,520 $ 631,966 Total current liabilities 588,161 $ 563,790 Long-term liabilities 1,627,498 $ 1,504,204 Debt Other liabilities 3,053,115 $ 2,828,667 Total liabilities $ $ $ 1,546,207$ 312,087 $ 1,858,294 $ 1,455,467 332,839 1,788,306 Accounts receivable Inventory Total current assets $ Long-term assets Investments $ $ $ 7,285,332 $ 1,462,386 $ 10,606,012 $ 6,604,728 1,345,418 9,738,452 $ 2013 Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 | Revenue $ 14,147,593 $ 13,567,684 Cost of goods sold $ -8,448,581 $ -8,131,777 Selling, general, and administrative expenses $ -998,896 $ -980,038 Depreciation $ -1,498,818 $ -1,471,391 EBIT 3,201,298 $ 2,984,478 Interest expense -375,716 $ -355,062 Taxes $ -1,073,721 $ -999,178 Net income $ 1,751,861 $ 1,630,238 Right click on the table and select Copy to Clipboard and then riaht-click the Investments 3,053,115 $ 2,828,667 Total liabilities $ 10,606,012 $ 9,738,452 Plant, property, and equipment $ 8,497,469 $ 8,481,535 OWNERS' EQUITY Goodwill $ 347,406 $ 347,022 Common stock $ 1,458,439 $ 1,454,595 Intangible assets 1,158,659 $ 957,252 Retained earnings $ 2,619,696 $ 2,925,633 Total owners' equity $ 4,078,135 $ 4,380,228 TOTAL LIABILITIES TOTAL ASSETS $ 14,684,147 $ 14,118,680 AND OWNERS' EQUITY $ 14,684,147$ 14,118,680 Right click on the table and select Copy to Clipboard and then right-click the highlighted texts in the popup dialogue box and select Copy order to paste its contents into a spreadsheet. Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: :: 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 42.96% for 2014. O B. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2014. OC. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2013. OD. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2013
