Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown in the popup...

 

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Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown in the popup window: Calculate the debt ratio, times interest earned ratio, and cash coverage ratio 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? What is the debt ratio for 2014? e CD (Round to four decimal places.) Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation $ $ EBIT Interest expense Taxes $ 14,147,638 $ -8,447,769 $ 13,566,398 -8,131,635 -998,752 $ -1,497,524 $ $ 3,203,593 $ $ -375,084 $ $ -1,074,833 $ Net income $ 1,753,676 $ Right-click on the table and select Copy to Clipboard and then right-click the -981,059 -1,471,363 2,982,341 -354,446 -998,600 1,629,295 Data table ASSETS Current assets Cash Investments Accounts receivable Inventory Total current assets Long-term assets Investments GA TOTAL ASSETS $ Plant, property, and equipment $ Goodwill Intangible assets $ 2014 190,856 $ 181,755 $ 667,248 $ 587,801 $ 1,627,660 $ 3,054,400 $ 8,496,616 $ 348,945 $ 1,157,950 $ 14,685,571 $ 2013 LIABILITIES Current liabilities 186,812 Accounts payable 121,774 Short-term debt 630,576 Total current liabilities 563,771 Long-term liabilities 1,502,933 Debt Other liabilities 2,828,680 Total liabilities 8,481,113 OWNERS' EQUITY 346,476 Common stock 956,143 Retained earnings Total owners' equity TOTAL LIABILITIES 14,115,345 AND OWNERS' EQUITY $ 2014 1,546,686 $ 312,872 $ 1,859,558 $ 7,285,241 $ 1,462,495 $ 10,607,294 $ 1,457,894 $ 2,620,383 $ 4,078,277 $ 14,685,571 $ 2013 1,456,572 332,431 1,789,003 6,603,859 1,346,244 9,739,106 1,453,366 2,922,873 4,376,239 14,115,345 Financial ratios: Financial leverage. The financial statements for Tyler Toys, Inc. are shown in the popup window: Calculate the debt ratio, times interest earned ratio, and cash coverage ratio 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? What is the debt ratio for 2014? e CD (Round to four decimal places.) Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue Cost of goods sold Selling, general, and administrative expenses Depreciation $ $ EBIT Interest expense Taxes $ 14,147,638 $ -8,447,769 $ 13,566,398 -8,131,635 -998,752 $ -1,497,524 $ $ 3,203,593 $ $ -375,084 $ $ -1,074,833 $ Net income $ 1,753,676 $ Right-click on the table and select Copy to Clipboard and then right-click the -981,059 -1,471,363 2,982,341 -354,446 -998,600 1,629,295 Data table ASSETS Current assets Cash Investments Accounts receivable Inventory Total current assets Long-term assets Investments GA TOTAL ASSETS $ Plant, property, and equipment $ Goodwill Intangible assets $ 2014 190,856 $ 181,755 $ 667,248 $ 587,801 $ 1,627,660 $ 3,054,400 $ 8,496,616 $ 348,945 $ 1,157,950 $ 14,685,571 $ 2013 LIABILITIES Current liabilities 186,812 Accounts payable 121,774 Short-term debt 630,576 Total current liabilities 563,771 Long-term liabilities 1,502,933 Debt Other liabilities 2,828,680 Total liabilities 8,481,113 OWNERS' EQUITY 346,476 Common stock 956,143 Retained earnings Total owners' equity TOTAL LIABILITIES 14,115,345 AND OWNERS' EQUITY $ 2014 1,546,686 $ 312,872 $ 1,859,558 $ 7,285,241 $ 1,462,495 $ 10,607,294 $ 1,457,894 $ 2,620,383 $ 4,078,277 $ 14,685,571 $ 2013 1,456,572 332,431 1,789,003 6,603,859 1,346,244 9,739,106 1,453,366 2,922,873 4,376,239 14,115,345

Answer rating: 100% (QA)

To calculate the financial ratios for Tyler Toys we need to use the provided financial statement information for both 2013 and 2014 Debt Ratio The deb... View the full answer