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Part $1$

Financial$$ ratios: Profitability.$$The financial statements for Tyler$$ Toys, Inc. are shown in the popup$$ window:$$LOADING$....$ Calculate the profit$$ 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?

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Part $1$

What is the profit margin for$2014?$

$$

enter your response here$\%($Round to two decimal$$ places.$)$

Tyler Toys, Inc.

Income Statement for Years Ending December $31,2013$ and $2014$

$2014$

$2013$

Revenue

$$14,147,982$

$$13,566,287$

Cost of goods sold

$$-8,447,107$

$$-8,132,109$

Selling, general, and administrative expenses

$$-997,318$

$$-981,249$

Depreciation

$$-1,498,666$

$$-1,472,251$

EBIT

$$3,204,891$

$$2,980,678$

Interest expense

$$-375,404$

$$-355,812$

Taxes

$$-1,075,205$

$$-997,449$

Net income

$$1,754,282$

$$1,627,417$

$$Right$-$click on the table and select Copy to Clipboard and then$$ 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

$$190,281$

$$187,593$

Accounts payable

$$1,545,956$

$$1,456,383$

Investments

$$181,687$

$$120,480$

Short$-$term debt

$$311,929$

$$333,574$

Accounts receivable

$$667,186$

$$631,310$

Total current liabilities

$$1,857,885$

$$1,789,957$

Inventory

$$587,147$

$$563,634$

Long$-$term liabilities

Total current assets

$$1,626,301$

$$1,503,017$

Debt

$$7,285,373$

$$6,604,430$

Long$-$term assets

Other liabilities

$$1,462,822$

$$1,345,725$

Investments

$$3,053,615$

$$2,827,686$

Total liabilities

$$10,606,080$

$$9,740,112$

Plant, property, and equipment

$$8,497,852$

$$8,480,410$

OWNERS$$ EQUITY

Goodwill

$$347,293$

$$346,199$

Common stock

$$1,457,922$

$$1,453,360$

Intangible assets

$$1,157,181$

$$956,903$

Retained earnings

$$2,618,240$

$$2,920,743$

Total owners$$ equity

$$4,076,162$

$$4,374,103$

TOTAL LIABILITIES

TOTAL ASSETS

$$14,682,242$

$$14,114,215$

AND OWNERS$$ EQUITY

$$14,682,242$

$$14,114,215$

$$ Right$-$click on the table and select Copy to Clipboard and then$$ right$-$click the highlighted texts in the popup dialogue box and select Copy