inancialratios: Financial leverage.The financial statements for TylerToys, Inc. are shown in the popupwindow:LOADING...

. Calculate the debtratio, times interest earnedratio, 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 theshareholders?

What is the debt ratio for2014?

. 7223

.7223(Round to four decimalplaces.)

What is the debt ratio for2013?

. 6901

.6901(Round to four decimalplaces.)

What is the times interest earned ratio for2014?

8.5329

8.5329(Round to four decimalplaces.)

What is the times interest earned ratio for2013?

8.3800

8.3800(Round to four decimalplaces.)

What is the cash coverage ratio for2014?

12.5278

12.5278(Round to four decimalplaces.)

What is the cash coverage ratio for2013?

12.5190

12.5190(Round to four decimalplaces.)

Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or theshareholders?(Select the bestresponse.)

A.

The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest earned ratio washigh, but with low ratios this means they are handling their large debt well.

B.

The debt ratio is very high and would warrant concern if the cash coverage ratio or the times interest earned ratio waslow, but with high ratios this means they are handling their large debt well.

C.

The debt ratio is very low and would warrant concern if the cash coverage ratio or the times interest earned ratio washigh, but with low ratios this means they are handling their large debt well.

D.

The debt ratio is very low and would warrant concern if the cash coverage ratio or the times interest earned ratio waslow, but with high ratios this means they are handling their large debt well.