Tyler Toys, Inc.

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

$2014$

$2013$

Revenue

$$14,147,994$

$$13,567,482$

Cost of goods sold

$$-8,448,477$

$$-8,132,480$

Selling, general, and

administrative expenses

$$-997,263$

$$-980,914$

Depreciation

$$-1,498,996$

$$-1,471,820$

EBIT

$$3,203,258$

$$2,982,268$

Interest expense

$$-375,564$

$$-355,181$

Taxes

$$-1,074,524$

$$-998,293$

Net income

$$1,753,170$

$$1,628,794$

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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

$$191,823$

$$187,748$

Accounts payable

$$1,546,068$

$$1,455,487$

Investments

$$180,639$

$$120,364$

Short$-$term debt

$$311,085$

$$332,745$

Accounts receivable

$$668,679$

$$631,455$

Total current liabilities

$$1,857,153$

$$1,788,232$

Inventory

$$588,740$

$$563,975$

Long$-$term liabilities

Total current assets

$$1,629,881$

$$1,503,542$

Debt

$$7,285,511$

$$6,604,846$

Long$-$term assets

Other liabilities

$$1,462,119$

$$1,346,683$

Investments

$$3,053,494$

$$2,828,503$

Total liabilities

$$10,604,783$

$$9,739,761$

Plant, property, and equipment

$$8,496,821$

$$8,480,857$

OWNERS$$ EQUITY

Goodwill

$$347,053$

$$346,212$

Common stock

$$1,458,618$

$$1,454,386$

Intangible assets

$$1,157,573$

$$957,909$

Retained earnings

$$2,621,421$

$$2,922,876$

Total owners$$ equity

$$4,080,039$

$$4,377,262$

TOTAL LIABILITIES

TOTAL ASSETS

$$14,684,822$

$$14,117,023$

AND OWNERS$$ EQUITY

$$14,684,822$

$$14,117,023$

$$ Right$-$click on the table and select Copy to Clipboard and then$$ right$-$click the highlighted texts in the popup dialogue box and select CopyFinancial$$ ratios: Financial leverage.$$The financial statements for Tyler$$ Toys, Inc. are shown in the popup$$ window:$$LOADING$....$ Calculate the debt$$ 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?

Question content area bottom

Part $1$

What is the debt ratio for$2014?$

$$

enter your response here$($Round to four decimal$$ places.$)$