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Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown in the popup window I Calculate the debt ratio, times interest eamed ratio, and cash coverage ratio 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 debt ratio for 2014? (Round to four decimal places) What is the debt ratio for 2013 (Round to four decimal places) What is the times interest earned ratio for 2014? (Round to four decimal places) What is the times interest eamed ratio for 2013 (Round to four decimal places) What is the cash coverage ratio for 2014? Quesbon Viewer (Round to four decimal places.) What is the cash coverage ratio for 2013? (Round to four 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. The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest eamed ratio was high, but with low ratios this means they are handling their large debt well OB. The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest eamed ratio was low, but with high ratios this means they are handling their large debt well OC. The debt ratio is very low and would warrant concem if the cash coverage ratio of the times interest earned ratio was high but with low ratios this means they are handling their large debt well D. The debt ratio is very low and would warrant concern if the cash coverage ratio or the times interest eamed ratio was low, but with high ratios this means they are handling their large debt well Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue 69 14,146,699 $ 13,567,243 -8,448,549 $ -8,131,229 Cost of goods sold Selling, general, and administrative expenses Depreciation $ $ -997,461 $ -980,947 $ -1,498,259 $ -1,471,710 EBIT 67 $ 3,202,430$ 2,983,357 Interest expense $ 69 -375,238$ -355,982 Taxes 69 -1,074,333$ -998,403 Net income $ 1,752,859 $ 1,628,972 Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 2013 LIABILITIES 2014 2013 Current assets Cash $ 1,545,328 $ 1,456,366 Current liabilities 187,437 Accounts payable $ 120,109 Short-term debt 630.128 Total current liabilities $ Investments $ 312,516 $ 191,223 $ 181,088$ 668,957 $ 587,192 $ 1,628,460 $ 332,555 1,788,921 Accounts receivable $ 1,857,844 $ Inventory $ Total current assets $ $ 6,604,217 564,689 Long-term liabilities 1,502,363 Debt Other lablaties 2,828,474 Total liabilities $ 7,285,448$ $ 1,462,293 $ 1,345,023 9,738,161 CA $ 3,053,951 $ $ 10,605,585 $ Long-term assets Investments Plant, property, and equipment Goodwill $ Intangible assets $ 8,496,186 $ 8,480,735 OWNERS' EQUITY $ 347,368 $ 347,501 Common stock 1,158,331 $ 957.188 Retained earnings Total owners' equity TOTAL LIABILITIES AND OWNERS' $ 14,684,296 $ 14,116,261 EQUITY $ 1,457,944 $ 1,453,734 $ 2,620,767 $ 2,924,366 $ 4,078,711$ 4,378,100 TOTAL ASSETS $ 14,684,296 $ 14,116,261