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?
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?
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
Related questions
Question
The financial statements for Tyler Toys, Inc. are shown in the popup window:
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?
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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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$14,146,094
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$13,567,551
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Cost of goods sold
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$-8,448,688
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$-8,131,338
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Selling, general, and administrative expenses
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$-998,878
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$-980,620
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$-1,497,580
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$-1,472,740
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EBIT
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$3,200,948
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$2,982,853
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Interest expense
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$-376,634
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$-354,060
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Taxes
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$-1,073,239
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$-998,941
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Net income
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$1,751,075
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$1,629,852
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Right-click on the table and select Copy to Clipboard and then right-click the
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Tyler Toys, Inc.
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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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$191,605
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$187,785
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Accounts payable
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$1,545,862
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$1,455,460
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Investments
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$180,795
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$120,972
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Short-term debt
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$312,791
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$332,179
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Accounts receivable
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$668,082
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$631,662
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Total current liabilities
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$1,858,653
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$1,787,639
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Inventory
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$587,794
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$564,582
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Long-term liabilities
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Total current assets
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$1,628,276
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$1,505,001
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Debt
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$7,286,515
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$6,603,728
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Long-term assets
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Other liabilities
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$1,463,972
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$1,346,841
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Investments
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$3,054,319
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$2,828,614
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Total liabilities
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$10,609,140
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$9,738,208
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Plant, property, and equipment
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$8,497,564
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$8,481,642
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OWNERS’ EQUITY
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$347,418
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$347,058
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Common stock
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$1,458,440
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$1,454,401
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Intangible assets
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$1,158,010
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$957,723
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$2,618,007
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$2,927,429
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Total owners’ equity
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$4,076,447
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$4,381,830
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TOTAL LIABILITIES
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TOTAL ASSETS
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$14,685,587
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$14,120,038
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AND OWNERS’ EQUITY
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$14,685,587
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$14,120,038
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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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