P14-10 (similar to) :Question Help O Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown in the popup window: E. 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? What is the debt ratio for 2014? (Round to four decimal places.) Enter your answer in the answer box and then click Check Answer Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,147,688 $ 13,567,783 Cost of goods sold $ -8,447,240 $ -8,131,810 Selling, general, and administrative expenses -997,936 $ -980,988 Depreciation -1,497,818 $ -1,472,768 EBIT $ 3,204,694 $ 2,982,217 Interest expense -375,537 $ -355,027 Taxes $ -1,075,080 $ -998,332 Net income 1,754,077 $ 1,628,858 GA $ $ $ 2014 2013 $ $ $ 1,546, 117 $ 311,437 $ 1,857,554 $ 1,455,156 332,474 1,787,630 $ ASSETS Current assets Cash $ Investments Accounts receivable $ Inventory $ Total current assets $ Long-term assets Investments $ Plant, property, and equipment $ Goodwill $ Intangible assets $ $ 6,604,844 2014 2013 LIABILITIES Current liabilities 191,437 $ 186,630 Accounts payable 181,209 $ 120,984 Short-term debt 667,420 $ 631,867 Total current liabilities 587,989 $ 564,355 Long-term liabilities 1,628,055 $ 1,503,836 Debt Other liabilities 3,053,897 $ 2,827,057 Total liabilities 8,497,780 $ 8,481,190 OWNERS' EQUITY 347,864 $ 347,133 Common stock 1,157,612 $ 957,667 Retained earnings Total owners' equity TOTAL LIABILITIES 14,685,208 $ 14,116,883 AND OWNERS' EQUITY $ 7,286,873 $ 1,462,117 $ 10,606,544 $ 1,345,445 9,737,919 $ $ $ $ 1,457,503 $ 2,621,161 $ 4,078,664 $ 1,453,877 2,925,087 4,378,964 $ TOTAL ASSETS $ $ 14,685,208 $ 14,116,883