Homework Help is Here – Start Your Trial Now!
Business
Finance
Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: . Calculate the profit margin, return on assets, ar 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? Data Table

Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: . Calculate the profit margin, return on assets, ar 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? Data Table

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

Chapter 14, Question 4

**Balance Sheet as of December 31, 2013 and 2014** This balance sheet provides a snapshot of a company's financial position, showing the assets, liabilities, and owners' equity for the years ending 2013 and 2014. --- **ASSETS** _Current Assets:_ - **Cash**: - 2014: $190,940 - 2013: $186,181 - **Investments**: - 2014: $180,378 - 2013: $120,353 - **Accounts Receivable**: - 2014: $667,060 - 2013: $630,670 - **Inventory**: - 2014: $588,433 - 2013: $564,397 - **Total Current Assets**: - 2014: $1,626,811 - 2013: $1,501,601 _Long-term Assets:_ - **Investments**: - 2014: $3,054,519 - 2013: $2,828,946 - **Plant, Property, and Equipment**: - 2014: $8,496,482 - 2013: $8,480,726 - **Goodwill**: - 2014: $348,518 - 2013: $346,957 - **Intangible Assets**: - 2014: $1,158,343 - 2013: $956,208 _Total Assets:_ - 2014: $14,684,673 - 2013: $14,114,438 --- **LIABILITIES** _Current Liabilities:_ - **Accounts Payable**: - 2014: $1,545,098 - 2013: $1,455,220 - **Short-term Debt**: - 2014: $312,684 - 2013: $333,076 - **Total Current Liabilities**: - 2014: $1,857,782 - 2013: $1,788,296 _Long-term Liabilities:_ - **Debt**: - 2014: $7,286,901 - 201
Transcribed Image Text:**Balance Sheet as of December 31, 2013 and 2014** This balance sheet provides a snapshot of a company's financial position, showing the assets, liabilities, and owners' equity for the years ending 2013 and 2014. --- **ASSETS** _Current Assets:_ - **Cash**: - 2014: $190,940 - 2013: $186,181 - **Investments**: - 2014: $180,378 - 2013: $120,353 - **Accounts Receivable**: - 2014: $667,060 - 2013: $630,670 - **Inventory**: - 2014: $588,433 - 2013: $564,397 - **Total Current Assets**: - 2014: $1,626,811 - 2013: $1,501,601 _Long-term Assets:_ - **Investments**: - 2014: $3,054,519 - 2013: $2,828,946 - **Plant, Property, and Equipment**: - 2014: $8,496,482 - 2013: $8,480,726 - **Goodwill**: - 2014: $348,518 - 2013: $346,957 - **Intangible Assets**: - 2014: $1,158,343 - 2013: $956,208 _Total Assets:_ - 2014: $14,684,673 - 2013: $14,114,438 --- **LIABILITIES** _Current Liabilities:_ - **Accounts Payable**: - 2014: $1,545,098 - 2013: $1,455,220 - **Short-term Debt**: - 2014: $312,684 - 2013: $333,076 - **Total Current Liabilities**: - 2014: $1,857,782 - 2013: $1,788,296 _Long-term Liabilities:_ - **Debt**: - 2014: $7,286,901 - 201
## Tyler Toys, Inc. ### Income Statement for Years Ending December 31, 2014 and 2013 - **Revenue:** - **2014:** $14,147,727 - **2013:** $13,566,582 - **Cost of Goods Sold:** - **2014:** $8,447,254 - **2013:** $8,131,493 - **Selling, General, and Administrative Expenses:** - **2014:** $997,182 - **2013:** $980,236 - **Depreciation:** - **2014:** $1,498,535 - **2013:** $1,472,750 - **EBIT (Earnings Before Interest and Taxes):** - **2014:** $3,204,756 - **2013:** $2,982,103 - **Interest Expense:** - **2014:** $376,595 - **2013:** $354,394 - **Taxes:** - **2014:** $1,074,701 - **2013:** $998,529 - **Net Income:** - **2014:** $1,753,460 - **2013:** $1,629,180 ### Instructions: To analyze this data further in a spreadsheet, right-click on the table and select "Copy to Clipboard." Then right-click the highlighted text in the popup dialogue box and select "Copy" to paste its contents into a spreadsheet. This data can be used to calculate important financial ratios such as profit margin, return on assets, and return on equity for the years 2013 and 2014. These ratios are useful in determining the financial health and profitability of Tyler Toys, Inc., and assessing whether any changes in these ratios warrant concern for managers or shareholders.
Transcribed Image Text:## Tyler Toys, Inc. ### Income Statement for Years Ending December 31, 2014 and 2013 - **Revenue:** - **2014:** $14,147,727 - **2013:** $13,566,582 - **Cost of Goods Sold:** - **2014:** $8,447,254 - **2013:** $8,131,493 - **Selling, General, and Administrative Expenses:** - **2014:** $997,182 - **2013:** $980,236 - **Depreciation:** - **2014:** $1,498,535 - **2013:** $1,472,750 - **EBIT (Earnings Before Interest and Taxes):** - **2014:** $3,204,756 - **2013:** $2,982,103 - **Interest Expense:** - **2014:** $376,595 - **2013:** $354,394 - **Taxes:** - **2014:** $1,074,701 - **2013:** $998,529 - **Net Income:** - **2014:** $1,753,460 - **2013:** $1,629,180 ### Instructions: To analyze this data further in a spreadsheet, right-click on the table and select "Copy to Clipboard." Then right-click the highlighted text in the popup dialogue box and select "Copy" to paste its contents into a spreadsheet. This data can be used to calculate important financial ratios such as profit margin, return on assets, and return on equity for the years 2013 and 2014. These ratios are useful in determining the financial health and profitability of Tyler Toys, Inc., and assessing whether any changes in these ratios warrant concern for managers or shareholders.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS