Question
Financial ratios: Liquidity.The financial statements for Tyler Toys, Inc. are shown in the popup window: Calculate the current ratio, quick ratio, and cash ratio for
Financial ratios: Liquidity.The financial statements for Tyler Toys, Inc. are shown in the popup window: Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?
| Tyler Toys, Inc. | ||
| Income Statement for Years Ending December 31, 2013 and 2014 | ||
|
| 2014 | 2013 |
| Revenue | $14,147,749 | $13,567,341 |
| Cost of goods sold | $-8,448,332 | $-8,131,744 |
| Selling, general, and administrative expenses | $-997,859 | $-980,400 |
| Depreciation | $-1,497,717 | $-1,472,372 |
| EBIT | $3,203,841 | $2,982,825 |
| Interest expense | $-375,500 | $-355,257 |
| Taxes | $-1,074,770 | $-998,476 |
| Net income | $1,753,571 | $1,629,092 |
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| Tyler Toys, Inc. | |||||
| Balance Sheet as of December 31, 2013 and 2014 | |||||
| ASSETS | 2014 | 2013 | LIABILITIES | 2014 | 2013 |
| Current assets |
|
| Current liabilities |
|
|
| Cash | $190,926 | $187,793 | Accounts payable | $1,546,260 | $1,456,919 |
| Investments | $181,496 | $120,253 | Short-term debt | $312,297 | $332,401 |
| Accounts receivable | $668,538 | $631,653 | Total current liabilities | $1,858,557 | $1,789,320 |
| Inventory | $587,683 | $563,072 | Long-term liabilities |
|
|
| Total current assets | $1,628,643 | $1,502,771 | Debt | $7,286,550 | $6,604,823 |
| Long-term assets |
|
| Other liabilities | $1,463,867 | $1,345,323 |
| Investments | $3,053,051 | $2,828,975 | Total liabilities | $10,608,974 | $9,739,466 |
| Plant, property, and equipment | $8,496,081 | $8,480,160 | OWNERS EQUITY |
|
|
| Goodwill | $348,181 | $346,128 | Common stock | $1,458,683 | $1,454,766 |
| Intangible assets | $1,158,494 | $956,879 | Retained earnings | $2,616,793 | $2,920,681 |
|
|
|
| Total owners equity | $4,075,476 | $4,375,447 |
|
|
|
| TOTAL LIABILITIES |
|
|
| TOTAL ASSETS | $14,684,450 | $14,114,913 | AND OWNERS EQUITY | $14,684,450 | $14,114,913 |
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
in order to paste its contents into a
spreadsheet.
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
