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?
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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The financial statements for Tyler Toys, Inc. are shown in the popup window:
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.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?
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Tyler Toys, Inc.
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Income Statement for Years Ending December 31, 2013 and 2014
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2014
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2013
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Revenue
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$14,146,091
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$13,567,817
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Cost of goods sold
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$-8,447,104
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$-8,131,461
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Selling, general, and
administrative expenses |
$-998,668
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$-981,881
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$-1,498,161
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$-1,471,091
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EBIT
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$3,202,158
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$2,983,384
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Interest expense
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$-375,459
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$-354,144
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Taxes
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$-1,074,146
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$-999,111
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Net income
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$1,752,553
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$1,630,129
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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
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Tyler Toys, Inc.
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Balance Sheet as of December 31, 2013 and 2014
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ASSETS
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2014
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2013
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LIABILITIES
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2014
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2013
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Current assets
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Current liabilities
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Cash
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$190,346
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$186,076
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Accounts payable
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$1,545,603
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$1,456,119
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Investments
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$180,787
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$120,392
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Short-term debt
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$312,462
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$333,048
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Accounts receivable
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$668,732
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$631,597
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Total current liabilities
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$1,858,065
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$1,789,167
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Inventory
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$587,652
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$563,404
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Long-term liabilities
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Total current assets
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$1,627,517
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$1,501,469
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Debt
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$7,286,852
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$6,603,319
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Long-term assets
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Other liabilities
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$1,463,152
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$1,346,912
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Investments
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$3,053,174
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$2,828,775
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Total liabilities
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$10,608,069
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$9,739,398
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Plant, property, and equipment
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$8,496,985
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$8,480,110
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OWNERS’ EQUITY
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$348,885
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$347,432
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Common stock
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$1,457,684
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$1,454,337
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Intangible assets
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$1,157,467
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$956,707
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$2,618,275
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$2,920,758
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Total owners’ equity
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$4,075,959
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$4,375,095
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TOTAL LIABILITIES
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TOTAL ASSETS
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$14,684,028
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$14,114,493
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AND OWNERS’ EQUITY
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$14,684,028
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$14,114,493
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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.
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