Financial ratios: Profitability.The financial statements for Tyler Toys, Inc. are shown in the popup window:

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. 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?

What is the profit margin for 2014?

nothing%

(Round to two decimal places.)

Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
	2014	2013
Revenue	$14,146,390	$13,566,911
Cost of goods sold	$-8,448,062	$-8,131,368
Selling, general, and administrative expenses	$-998,620	$-980,181
Depreciation	$-1,498,822	$-1,472,729
EBIT	$3,200,886	$2,982,633
Interest expense	$-375,098	$-354,253
Taxes	$-1,073,799	$-998,784
Net income	$1,751,989	$1,629,596

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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	$191,671	$187,188	Accounts payable	$1,545,109	$1,456,148
Investments	$180,014	$121,776	Short-term debt	$311,364	$332,410
Accounts receivable	$667,117	$630,396	Total current liabilities	$1,856,473	$1,788,558
Inventory	$588,540	$563,304	Long-term liabilities
Total current assets	$1,627,342	$1,502,664	Debt	$7,286,627	$6,603,688
Long-term assets			Other liabilities	$1,462,201	$1,345,226
Investments	$3,053,252	$2,827,275	Total liabilities	$10,605,301	$9,737,472
Plant, property, and equipment	$8,496,130	$8,480,237	OWNERS EQUITY
Goodwill	$347,246	$346,840	Common stock	$1,457,752	$1,453,931
Intangible assets	$1,158,714	$956,487	Retained earnings	$2,619,631	$2,922,100
			Total owners equity	$4,077,383	$4,376,031
			TOTAL LIABILITIES
TOTAL ASSETS	$14,682,684	$14,113,503	AND OWNERS EQUITY	$14,682,684	$14,113,503

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