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Calculate the current ratio, quick ratio, and cash ratio for Tyler Toys for 2013 and 2014. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?

Tyler Toys, Inc. Income Statement for Years Ending December 31, 2013 and 2014 2014 2013 Revenue $ 14,147,735 $ 13,566,681 $ -8,447,086 $ -8,131,439 Cost of goods sold Selling, general, and administrative expenses Depreciation $ -998,940 $ -980,365 $ -1,497,444 $ -1,471,999 EBIT $ 3,204,265 $ 2,982,878 Interest expense $ -376,611$ -354,219 Taxes $ -1,074,509 $ -998,890 Net income $ 1,753,145 $ 1,629,769 Tyler Toys, Inc. Balance Sheet as of December 31, 2013 and 2014 ASSETS 2014 2013 LIABILITIES 2014 2013 Current assets Current liabilities Cash $ 191,430 $ $ 1,545,143 $ 187,882 Accounts payable 121,532 Short-term debt 1,455,882 333,394 Investments $ 181,228 $ $ 311,080 $ Accounts receivable $ 668,134 $ 631,724 Total current liabilities $ 1,856,223 $ 1,789,276 $ 587,948 $ Inventory Total current assets $ 1,628,740 $ 564,905 Long-term liabilities 1,506,043 Debt Other liabilities $ 7,286,704 $ 6,604,917 1,345,068 Long-term assets $ 1,462,397 $ Investments $ 3,054,633 $ 2,827,031 Total liabilities $ 10,605,324 $ 9,739,261 $ 8,496,746 $ 8,480,468 OWNERS' EQUITY Plant, property, and equipment Goodwill $ 348,939 $ 346,111 Common stock $ 1,457,663 $ Intangible assets $ 1,157,422 $ 956, 107 Retained earnings $ 2,623,493 $ 1,454,621 2,921,878 4,376,499 Total owners' equity $ 4,081,156 $ TOTAL LIABILITIES TOTAL ASSETS $ 14,686,480 $ 14,115,760 AND OWNERS' EQUITY $ 14,686,480 $ 14,115,760

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