Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,146,274 $ 13,566,127) Cost of goods sold $ -8,447,050 $ -8,131,100 Selling, general, and administrative expenses $ -998,579 $ -980,349 Depreciation $ -1,498,963 $ -1,471,9451 EBIT $ 3,201,682 $ 2,982,733 Interest expense $ -376,425 $ -355,4521 Taxes $ -1,073,598 $ -998,367 Net income $ 1,751,659 $ 1,628,9141 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 $ 191,078 $ 187,806 Accounts payable $ 1,546,022 $ 1,456,551 Investments $ 180,599 $ 121,846 Short-term debt $ 311,875$ 332,115 Accounts receivable $ 667,198$ 631,437 Total current liabilities $ 1,857,897 $ 1,788,666 Inventory $ 588,757 $ 563,523 Long-term liabilities Total current assets $ 1,627,632 $ 1,504,612 Debt $ 7,286,243 $ 6,604,884 Long-term assets Other liabilities $ 1,462,159 $ 1,345,993 Investments $ 3,053,473 $ 2,828,290 Total liabilities $ 10,606,299 $ 9,739,543 Plant, property, and equipment $ 8,497,2471 $ 8,481,588 OWNERS' EQUITY Goodwill $ 348,5141 $ 346,985 Common stock $ 1,458,526 $ 1,453,422 Intangible assets $ 1,157,286 $ 957,196 Retained earnings $ 2,619,327 $ 2,925,706 Total owners' equity $ 4,077,853 $ 4,379,128 TOTAL LIABILITIES TOTAL ASSETS $ 14,684,152 $ 14,118,671 AND OWNERS' EQUITY 14,684,152 $ 14,118,671 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. $ Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: E 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? What is the profit margin for 2014? % (Round to two decimal places.) What is the profit margin for 2013? % (Round to two decimal places.) What is the return on assets for 2014? 1% (Round to two decimal places.) What is the return on assets for 2013? % (Round to two decimal places.) What is the return on equity for 2014? 1% (Round to two decimal places.) What is the return on equity for 2013? % (Round to two 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.) O A. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2013. O B. These ratios indicate a somewhat weak firm performance for the equity holders with an ROE of over 42.96% for 2014. O C. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2014. D. These ratios indicate a somewhat strong firm performance for the equity holders with an ROE of over 42.96% for 2013
