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
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 8EP
Related questions
Question
Chapter 14, Question 4
![Balance Sheet as of December 31, 2013 and 2014
ASSETS
2014
2013
LIABILITIES
2014
2013
Current assets
Current liabilities
Cash
190,940 $
1,545,098 $
186,181 Accounts payable
120,353 Short-term debt
2$
1,455,220
Investments
Accounts receivable
312,684 $
180,378 $
$
$
333,076
667,060 $
$
630,670 Total current liabilities
$
1,857,782 $
1,788,296
Inventory
588,433 $
564,397 Long-term liabilities
Total current assets
1,626,811| $
1,501,601 Debt
7,286,901 $
6,603,753
1,345,529
$
Long-term assets
Other liabilities
$
1,462,274 $
$
3,054,519 $
2,828,946 Total liabilities
$
10,606,957 $
9,737,578
Investments
Plant, property, and equipment $
8,496,482 $
$
8,480,726 OWNERS' EQUITY
Goodwill
348,518 $
346,957 Common stock
2$
1,458,225 $
1,454,914
956,208 Retained earnings
Total owners' equity
TOTAL LIABILITIES
Intangible assets
1,158,343 $
$
2,619,491 $
2,921,946
$
4,077,716 $
4,376,860
TOTAL ASSETS
14,684,673 $ 14,114,438 AND OoWNERS' EQUITY
$
14,684,673 $ 14,114,438
%24
%24
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa223f0e3-2554-4766-a321-af5562da259d%2F99d80dd8-b28d-4375-a842-07d65a83771b%2Fukgbn6o_processed.png&w=3840&q=75)
Transcribed Image Text:Balance Sheet as of December 31, 2013 and 2014
ASSETS
2014
2013
LIABILITIES
2014
2013
Current assets
Current liabilities
Cash
190,940 $
1,545,098 $
186,181 Accounts payable
120,353 Short-term debt
2$
1,455,220
Investments
Accounts receivable
312,684 $
180,378 $
$
$
333,076
667,060 $
$
630,670 Total current liabilities
$
1,857,782 $
1,788,296
Inventory
588,433 $
564,397 Long-term liabilities
Total current assets
1,626,811| $
1,501,601 Debt
7,286,901 $
6,603,753
1,345,529
$
Long-term assets
Other liabilities
$
1,462,274 $
$
3,054,519 $
2,828,946 Total liabilities
$
10,606,957 $
9,737,578
Investments
Plant, property, and equipment $
8,496,482 $
$
8,480,726 OWNERS' EQUITY
Goodwill
348,518 $
346,957 Common stock
2$
1,458,225 $
1,454,914
956,208 Retained earnings
Total owners' equity
TOTAL LIABILITIES
Intangible assets
1,158,343 $
$
2,619,491 $
2,921,946
$
4,077,716 $
4,376,860
TOTAL ASSETS
14,684,673 $ 14,114,438 AND OoWNERS' EQUITY
$
14,684,673 $ 14,114,438
%24
%24
%24
%24
![Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: 9. 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?
Data Table
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
2014
2013
Revenue
14,147,727 $
13,566,582
Cost of goods sold
$
-8,447,254 $
-8,131,493
Selling, general, and administrative expenses
$
-997,182 $
-980,236
Depreciation
$
-1,498,535 $
-1,472,750
EBIT
3,204,756 $
2,982,103
Interest expense
$
-376,595 $
-354,394
Таxes
-1,074,701 $
-998,529
1,753,460 $
Net income
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
$
1,629,180
contents into a spreadsheet.
Tyler Toys, Inc.
Balance Sheet as of December 31, 2013 and 2014](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa223f0e3-2554-4766-a321-af5562da259d%2F99d80dd8-b28d-4375-a842-07d65a83771b%2Fm0v4yz5_processed.png&w=3840&q=75)
Transcribed Image Text:Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: 9. 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?
Data Table
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
2014
2013
Revenue
14,147,727 $
13,566,582
Cost of goods sold
$
-8,447,254 $
-8,131,493
Selling, general, and administrative expenses
$
-997,182 $
-980,236
Depreciation
$
-1,498,535 $
-1,472,750
EBIT
3,204,756 $
2,982,103
Interest expense
$
-376,595 $
-354,394
Таxes
-1,074,701 $
-998,529
1,753,460 $
Net income
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
$
1,629,180
contents into a spreadsheet.
Tyler Toys, Inc.
Balance Sheet as of December 31, 2013 and 2014
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