Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2010 and 2011. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?

Calculate the debt ratio, times interest earned ratio, and cash coverage ratio for 2010 and 2011 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 inventory turnover, days? sales in inventory, receivables turnover, days? sales in receivables, and total asset turnover ratios for 2010 and 2011 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 2010 and 2011 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?

For the following firms, find the return on equity using the three components of the DuPont identity: operating efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total equity).

Financial Information ($ in millions, 2009)

Transcribed Image Text:

Tyler Toys Inc. Income Statement for Years Ending December 31, 2010 and 2011 2011 $14,146,700 $ 8,449,100 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation EBIT Interest expense Taxes Net income $ 999,320 $ 1,498,980 $ 3,199,300 $375,000 $ 1,093,300 $ 1,731,000 2010 $13,566,400 $ 8,131,300 $ 982,160 $ 1,473,240 $ 2,979,700 $ 356,100 $ 1,041,500 $ 1,582,100 ASSETS Current assets Cash Investments Accounts receivable Inventory Total current assets Long-term assets Investments Plant, property, and equipment Goodwill Intangible assets TOTAL ASSETS Tyler Toys Inc. Balance Sheet as of December 31, 2010 and 2011 2010 LIABILITIES Current liabilities Accounts payable Short-term debt Total current liabilities. Long-term liabilities Debt Other liabilities Total liabilities OWNERS' EQUITY Common stock Retained earnings Total owners' equity TOTAL LIABILITIES AND OWNERS' EQUITY 2011 $ 191,000 $ 188,900 $ 182,300 $ 121,800 S 669,400 $ 630,400 $ 587,500 $ 563,600 $ 1,630,200 $ 1,504,700 $ 3,052,000 $ 8,498,900 $349,000 $ 1,159,300 $ 2,827,900 $ 8,481,500 $ 348,700 $ 956,700 $14,689,400 $14,119,500 2011 $ 1,545,700 $ 311,500 $ 1,857,200 $ 8,658,400 $ 1,462,100 $11,977,700 $ 1,457,900 $ 1,253,800 $ 2,711,700 $14,689,400 2010 $1,455,100 $ 332,600 $ 1,787,700 $7,934,400 $1,345,100 $11,067,200 $ 1,453,400 $ 1,598,900 $ 3,052,300 $14,119,500 Company PepsiCo Coca-Cola Starbucks Sales $43,251 $31,994 $10,383 Net Income $5,142 $5,807 $ 315 Total Assets $35,994 $40,519 $ 5,673 Liabilities $23,888 $20,047 $ 3,182 Tyler Toys Inc. Income Statement for Years Ending December 31, 2010 and 2011 2011 $14,146,700 $ 8,449,100 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation EBIT Interest expense Taxes Net income $ 999,320 $ 1,498,980 $ 3,199,300 $375,000 $ 1,093,300 $ 1,731,000 2010 $13,566,400 $ 8,131,300 $ 982,160 $ 1,473,240 $ 2,979,700 $ 356,100 $ 1,041,500 $ 1,582,100 ASSETS Current assets Cash Investments Accounts receivable Inventory Total current assets Long-term assets Investments Plant, property, and equipment Goodwill Intangible assets TOTAL ASSETS Tyler Toys Inc. Balance Sheet as of December 31, 2010 and 2011 2010 LIABILITIES Current liabilities Accounts payable Short-term debt Total current liabilities. Long-term liabilities Debt Other liabilities Total liabilities OWNERS' EQUITY Common stock Retained earnings Total owners' equity TOTAL LIABILITIES AND OWNERS' EQUITY 2011 $ 191,000 $ 188,900 $ 182,300 $ 121,800 S 669,400 $ 630,400 $ 587,500 $ 563,600 $ 1,630,200 $ 1,504,700 $ 3,052,000 $ 8,498,900 $349,000 $ 1,159,300 $ 2,827,900 $ 8,481,500 $ 348,700 $ 956,700 $14,689,400 $14,119,500 2011 $ 1,545,700 $ 311,500 $ 1,857,200 $ 8,658,400 $ 1,462,100 $11,977,700 $ 1,457,900 $ 1,253,800 $ 2,711,700 $14,689,400 2010 $1,455,100 $ 332,600 $ 1,787,700 $7,934,400 $1,345,100 $11,067,200 $ 1,453,400 $ 1,598,900 $ 3,052,300 $14,119,500 Company PepsiCo Coca-Cola Starbucks Sales $43,251 $31,994 $10,383 Net Income $5,142 $5,807 $ 315 Total Assets $35,994 $40,519 $ 5,673 Liabilities $23,888 $20,047 $ 3,182

Answer rating: 100% (QA)

Current Ratio 2011 2010 Current Assets 1630200 1504700 Current Liabilities 1857200 1787700 088 084 Quick Ratio Current Assets Inventories 1630200 587500 1504700 563600 Current Liabilities 1857200 1787... View the full answer