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?

Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
	2014	2013
Revenue	$14,146,748	$13,567,954
Cost of goods sold	$-8,447,154	$-8,132,993
Selling, general, and administrative expenses	$-997,557	$-981,060
Depreciation	$-1,498,262	$-1,471,795
EBIT	$3,203,775	$2,982,106
Interest expense	$-376,608	$-354,689
Taxes	$-1,074,323	$-998,418
Net income	$1,752,844	$1,628,999

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.

Tyler Toys, Inc.
Balance Sheet as of December 31, 2013 and 2014
ASSETS	2014	2013	LIABILITIES	2014	2013
Current assets			Current liabilities
Cash	$190,490	$186,139	Accounts payable	$1,546,501	$1,456,625
Investments	$180,227	$120,022	Short-term debt	$311,087	$332,334
Accounts receivable	$667,584	$630,762	Total current liabilities	$1,857,588	$1,788,959
Inventory	$587,365	$563,523	Long-term liabilities
Total current assets	$1,625,666	$1,500,446	Debt	$7,285,006	$6,604,416
Long-term assets			Other liabilities	$1,462,584	$1,346,061
Investments	$3,053,573	$2,828,209	Total liabilities	$10,605,178	$9,739,436
Plant, property, and equipment	$8,497,811	$8,480,129	OWNERS EQUITY
Goodwill	$348,496	$346,168	Common stock	$1,458,831	$1,454,931
Intangible assets	$1,158,540	$957,351	Retained earnings	$2,620,077	$2,917,936
			Total owners equity	$4,078,908	$4,372,867
			TOTAL LIABILITIES
TOTAL ASSETS	$14,684,086	$14,112,303	AND OWNERS EQUITY	$14,684,086	$14,112,303

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.

PrintDone