Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation EBIT Interest expense Taxes Net income 2014 2013 $ 14,147,862 $ 13,567,762 $ -8,447,674 $ -8,132,436 $ -998,933 $ -980,899 $ EA -1,498,461 $ -1,472,174 3,202,794 $ 2,982,253 $ -376,711 $ -354,571 $ -1,073,912 $ -998,519 $ 1,752,171 $ 1,629,163 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. Data table Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 Current assets 2013 LIABILITIES 2014 2013 Current liabilities Cash Investments Accounts receivable 190,647 $ 187,654 Accounts payable $ 1,545,645 $ 1,455,866 181,165 $ 120,591 Short-term debt $ 311,077 $ 332,103 668,298 $ 631,763 Total current liabilities 1,856,722 $ 1,787,969 Inventory $ 587,224 $ Total current assets 1,627,334 $ 564,154 Long-term liabilities 1,504,162 Debt $ 7,286,377 $ 6,603,854 Long-term assets Other liabilities $ 1,463,373 $ 1,345,920 Investments 3,053,012 $ 2,828,915 Total liabilities EA $ 10,606,472 $ 9,737,743 Plant, property, and equipment $ 8,496,097 $ 8,480,944 OWNERS' EQUITY Goodwill 347,986 $ 347,027 Common stock $ 1,457,062 $ 1,453,701 Intangible assets 1,158,250 $ 957,552 Retained earnings $ 2,619,145 $ 2,927,156 Total owners' equity $ 4,076,207 $ 4,380,857 TOTAL LIABILITIES TOTAL ASSETS $ 14,682,679 $ 14,118,600 AND OWNERS' EQUITY $ 14,682,679 $ 14,118,600 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. 5. Financial ratios: Liquidity. The financial statements for Tyler Toys, Inc. are shown in the popup window: 1. Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. 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 current ratio for 2014? (Round to four decimal places.) What is the current ratio for 2013? (Round to four decimal places.) What is the quick ratio for 2014? (Round to four decimal places.) What is the quick ratio for 2013? (Round to four decimal places.) What is the cash ratio for 2014? (Round to four decimal places.) What is the cash ratio for 2013? (Round to four decimal places.) Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? (Select the best response.) 000 A. The ratios do not look reasonable and the managers of Tyler Toys should make the appropriate adjustments. B. The ratios look reasonable and the change shows improving liquidity for all ratios. C. The ratios look reasonable and the change shows deteriorating liquidity for all ratios. D. The ratios look reasonable and the change shows improving liquidity for all ratios except the cash ratio.