Financial ratios: Financial leverage.The financial statements for Tyler Toys, Inc. are shown below Calculate the debt ratio, times interest earned 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?

Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,147,539 $ 13,567,609 Cost of goods sold $ -8,447,251 -8,131,805 Selling, general, and administrative expenses -997,280 $ -981,0331 Depreciation $ -1,498,951 $ -1,471,052 EBIT $ 3,204,057 $ 2,983,719 Interest expense $ -376,329 $ -354,836 Taxes $ 1,074,537 $ -998,976 Net income $ 1,753,191 $ 1,629,907 ASSETS 2014 2013 Current assets Cash Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 2014 2013 LIABILITIES Current liabilities 190,082 $ 187,357 Accounts payable 180,739 $ 120,230 Short-term debt 667,551 $ 631,187 Total current liabilities 587,859 $ 563,604 Long-term liabilities 1,626,231 $ 1,502,378 Debt Other liabilities Investments $ $ S 1,546,388 $ 311,381 $ 1,857,769 S 1.456,040 332,449 1,788,489 Accounts receivable Inventory Total current assets $ 7,286,489 $ 1.462,036 $ 6,604,162 1,346,707 Long-term assets $ 10,606,294 $ 9,739,358 Investments Plant, property, and equipment Goodwill $ $ 3,054,535 S 8,496,102 S 347,664 S 1,158,055 S Intangible assets $ 2,827,474 Total liabilities 8,481,351 OWNERS' EQUITY 346,869 Common stock 957,995 Retained earnings Total owners' equity TOTAL LIABILITIES 14,116,067 AND OWNERS' EQUITY $ $ $ 1,458,934 S 2,617,359 $ 4,076,293 $ 1,454,013 2,922,696 4,376,709 TOTAL ASSETS $ 14,682,587 $ S 14,682,587 $ 14,116,067