Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
	2014	2013
Revenue	$14,146,635	$13,567,994
Cost of goods sold	$-8,447,458	$-8,132,615
Selling, general, and administrative expenses	$-997,959	$-980,032
Depreciation	$-1,497,972	$-1,471,227
EBIT	$3,203,246	$2,984,120
Interest expense	$-375,074	$-355,269
Taxes	$-1,074,705	$-998,963
Net income	$1,753,467	$1,629,888

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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	$191,437	$186,958	Accounts payable	$1,546,315	$1,455,467
Investments	$181,098	$121,675	Short-term debt	$311,983	$333,537
Accounts receivable	$667,073	$630,906	Total current liabilities	$1,858,298	$1,789,004
Inventory	$587,047	$563,317	Long-term liabilities
Total current assets	$1,626,655	$1,502,856	Debt	$7,285,095	$6,603,690
Long-term assets			Other liabilities	$1,463,678	$1,346,217
Investments	$3,054,463	$2,827,098	Total liabilities	$10,607,071	$9,738,911
Plant, property, and equipment	$8,496,832	$8,480,617	OWNERS EQUITY
Goodwill	$348,017	$346,479	Common stock	$1,457,529	$1,454,406
Intangible assets	$1,158,578	$957,091	Retained earnings	$2,619,945	$2,920,824
			Total owners equity	$4,077,474	$4,375,230
			TOTAL LIABILITIES
TOTAL ASSETS	$14,684,545	$14,114,141	AND OWNERS EQUITY	$14,684,545	$14,114,141

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. 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?

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