Question
What is the debt ratio for 2014? What is the debt ratio for 2013? What is the times interest earned ratio for 2014? What is
What is the debt ratio for 2014?
What is the debt ratio for 2013?
What is the times interest earned ratio for 2014?
What is the times interest earned ratio for 2013?
What is the cash coverage ratio for 2014?
What is the cash coverage ratio for 2013?
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.)
A. The debt ratio is very low and would warrant concern if the cash coverage ratio or the times interest earned ratio was low but with high ratios this means they are handling their large debt well.
B. The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest earned ratio was high but with low ratios this means they are handling their large debt well.
C. The debt ratio is very low and would warrant concern if the cash coverage ratio or the times interest earned ratio was high but with low ratios this means they are handling their large debt well.
D. The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest earned ratio was low but with high ratios this means they are handling their large debt well.
$ Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,146,059 $ 13,566,605 Cost of goods sold $ -8,447,090 % -8,132,856 Selling, general, and administrative expenses $ -998,588$ -981,012 Depreciation $ -1,498,091 $ -1,472,971 EBIT $ 3,202,290 $ 2,979,766 interest expense $ -376,047 $ -355,375 Taxes $ -1,073,972 $ -997,269 Net income $ 1,752,271 $ 1,627,122 $ $ Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 2013 LIABILITIES 2014 2013 Current assets Current liabilities Cash $ 191,066 $ 186,040 Accounts payable $ 1,546,709 $ 1,456,724 Investments S 180,959 $ 120,665 Short-term debt $ 311,341 $ 332,293 Total current Accounts receivables 667,301 $ 630,483 liabilities S 1,858,050 $ 1,789,017 Inventory $ 588,133 $ 563,889 Long-term liabilities Total current assets $ 1,627,459 $ 1,501,077 Debt $ 7,286,328 S 6,603,352 Long-term assets Other liabilities $ 1,462,071 $ 1,346,540 Investments $ 3,054, 192 $ 2,828,479 Total liabilities $ 10,606,449 $ 9,738,909 Plant, property, and equipment $ 8,497,578 $ 8,480,157 OWNERS' EQUITY Goodwill $ 348,797 $ 347,683 Common stock $ 1,457,536 $ 1,454,454 Intangible assets 1,158,489 $ 957,414 Retained earnings $ 2,622,530 $ 2,921,447 Total owners' equity $ 4,080,066 S4,375,901 TOTAL LIABILITIES AND OWNERS TOTAL ASSETS $ 14,686,515 S 14,114,810 EQUITY $ 14,686,515 S 14,114,810 AStep by Step Solution
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