Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window 5 Calculate the pott margir retum an assets, and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window 5 Calculate the pott margir retum an 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? 0% (Round to two decimal places) What is the return on assets for 20142 % (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 20147 % (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) OA. These ratios indicata a somewhat weak firm performance for the equity holders with an ROE of ovet 42.96% for 2014 OB. Those ratios indicate a somewhat weak fim performance for the equity holders with an ROE of over 42 96% for 2013 C. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2013 D. Those ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2014 $ $ Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue 14,147,687 $ 13,566,411 Cost of goods sold -8.448,886 $ 18,132 132,907 Selling, general, and administrative expenses $ -998,455 $ -980,377 Depreciation -1 498,455 $ 1.472 204 EBIT 3,201,891 $ 2.980.923 Interest expense $ -376,567|s -355,979 Taxes -1.073,623 $ -997 479 Net income 1,751,701 $ 1,627,465 Right-click on the table and select Copy to Clipboard and then night click the $ $ A LA ASSETS 2014 2013 Current assets Cash IS 1.456,936 1,545,360 $ 312.554 $ Investments $ $ 332,671 , Balance Sheet as of December 31, 2013 and 2014 2014 2013 LIABILITIES Current liabilities 190,680 $ 186,767 Accounts payable 181,725$ 120.995 Short-term debt 667,156 $ 631,690 Total current liabilities 588,021 $ 563,853 Long-term liabilities 1,627,582 $ 1,503,305 Debt Other liabilities 3,053 477 $ 2,828,273 Total liabilities 8.496.585 $ 8.480,383 OWNERS' EQUITY $ 1,857,914 5 1,789,607 Accounts receivable Inventory $ $ Total current assets $ S $ 7,286,986 $ S 1.462 495 5 $10,607,395 6.603 608 1.346,029 Long-term assets Investments $ 9,739,244 Piant property, and equipments $ $ Total current assets 1,627,582 $ 1,503,305 Debt 7.286,986 $ 6,603,608 Long-term assets Other liabilities $ 1,462 495 $ 1,346 029 Investments 3,053,477 $ 2,828,273 Total liabilities $ 10,607,395 $ 9,739,244 Plant, property, and equipment $ 8,496,585 $ 8,480,383 OWNERS' EQUITY Goodwill $ 348,555 $ 346,761Common stock $ 1,457,753 $ 1.454 115 Intangible assets 1 158,90915 956,261 Retained earnings $ 2,619,960 $ 2.921,624 Total owners' equity 4,077.713 $ 4,375,739 TOTAL LIABILITIES TOTAL ASSETS 14,685,108 $ 14,114,983 AND OWNERS' EQUITY 14,685,108 14,114,983 Right click on the table and select Copy to Clipboard and then night-click the highlighted texts in the popup dialogue box and select $ S Copy

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems And Internal Control

Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman

2nd Edition

0470753951, 9780470753958

More Books

Students also viewed these Accounting questions

Question

What are some sources of ethical guidance?

Answered: 1 week ago